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Measuring performance heterogeneity within groups - a two-dimensional approach


  • Michael Fritsch
  • Andreas Stephan


We introduce a two-dimensional measure for the heterogeneity of performance within groups. It leads to a much more differentiated description of heterogeneity than alternative measures and it is relatively robust with regard to extreme values of small units ('outliers').

Suggested Citation

  • Michael Fritsch & Andreas Stephan, 2006. "Measuring performance heterogeneity within groups - a two-dimensional approach," Applied Economics Letters, Taylor & Francis Journals, vol. 13(1), pages 17-20.
  • Handle: RePEc:taf:apeclt:v:13:y:2006:i:1:p:17-20 DOI: 10.1080/13504850500119187

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    References listed on IDEAS

    1. Hansen, Bruce E, 2002. "Tests for Parameter Instability in Regressions with I(1) Processes," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 45-59, January.
    2. Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-565, May-June.
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    Cited by:

    1. Fritsch, Michael & Stephan, Andreas, 2004. "The distribution and heterogeneity of technical efficiency within industries: An empirical assessment," Freiberg Working Papers 2004,12, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    2. Fritsch, Michael & Stephan, Andreas, 2004. "What causes cross-industry differences of technical efficiency? An empirical investigation," Freiberg Working Papers 2004,13, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.

    More about this item

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance


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