Author： O'Donnell Christopher
Publisher： Springer Publishing Company
ISSN： 0377-7332
Source： Empirical Economics, Vol.34, Iss.2, 2008-03, pp. : 231-255
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Abstract
This paper uses the concept of a metafrontier to compare the technical efficiencies of firms that may be classified into different groups. The paper presents the basic analytical framework necessary for the definition of a metafrontier, shows how a metafrontier can be estimated using non-parametric and parametric methods, and presents an empirical application using cross-country agricultural sector data. The paper also explores the issues of technological change, time-varying technical inefficiency, multiple outputs, different efficiency orientations, and firm heterogeneity.
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