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Economic performance and “frontier” efficiency: A product life-cycle approach

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  • Julien Broeck
  • Fernand Broeckx
  • Leonard Kaufman

Abstract

We propose to introduce some economic performance variables of the firms and relate these with the corresponding “frontier” efficiency measures of 13 industries of the Belgian manufacturing sector in 1978. In order to find groups of similar firms by applying a cluster technique, we assume that this relationship is of a product life cycle nature. In the light of the product life cycle scheme itself and variations of it we can consider the possible explanatory variables of technical inefficiency in each group of firms as sources which intensify or slow-down the economic performance of the firm under consideration. Some cautious characterization of the top and bottom level clusters is formulated and linked to the efficiency issue. Copyright Kluwer Academic Publishers 1989

Suggested Citation

  • Julien Broeck & Fernand Broeckx & Leonard Kaufman, 1989. "Economic performance and “frontier” efficiency: A product life-cycle approach," Journal of Productivity Analysis, Springer, vol. 1(1), pages 43-78, March.
    • Handle: RePEc:kap:jproda:v:1:y:1989:i:1:p:43-78
    DOI: 10.1007/BF00161738
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    References listed on IDEAS

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    1. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
    2. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-444, June.
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