Metafrontier Functions for the Study of Inter-regional Productivity Differences
The paper uses the concept of metafrontier functions to study regional differences in production technologies. The paper has three components. The first deals with the analytical framework necessary for the definition of metafrontier functions. The second component studies the properties of the metafrontier estimated using nonparametric data envelopment analysis (DEA). The third component focuses on the estimation of metafrontiers within the parametric framework of stochastic frontier analysis (SFA). The empirical application of the models uses cross-country agricultural sector data. The DEA and SFA metafrontiers are presented and discussed.
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- Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
- George E. Battese & D. S. Prasada Rao, 2002. "Technology Gap, Efficiency, and a Stochastic Metafrontier Function," International Journal of Business and Economics, College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 1(2), pages 87-93, August.
- Hayami, Yujiro & Ruttan, Vernon W, 1970. "Agricultural Productivity Differences Among Countries," American Economic Review, American Economic Association, vol. 60(5), pages 895-911, December.
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