One of the main purposes of the frontier literature is to estimate inefficiency. Given this objective, it is unfortunate that the issue of estimating “firm-specific” inefficiency in cross sectional context has not received much attention. To estimate firm-specific (technical) inefficiency, the standard procedure is to use the mean of the inefficiency term conditional on the entire composed erro...

Environmental performance of the U.S. States is investigated for the period of 1990 – 2007 using Stochastic Frontier Analysis (SFA). The SFA accounts for both efficiency measure and stochastic noise affecting a frontier. The frontier is formed using indicators of GDP, energy consumption, population, and CO2 emissions. For comparability, all indicators are expressed as ratios to total. Statistic...

technical and scale efficiencies of cotton farms, in khorasan province, were estimated through the parametric approach during the period 2000-2003. efficiency was estimated through stochastic translog frontier production function based on panel data. results indicated that technical efficiency wa rated as less than scale efficiency. means of technical and scale efficiency were found to be 63 an...

We consider the case of production units arranged into a number of groups. All units within a group choose output-input combinations from the same production possibilities set, which is represented by a stochastic frontier model. The metafrontier is the envelope (over groups) of the group-specific frontiers. We are interested in the unit’s inefficiency relative to its group-specific frontier, b...

The literature on the measurement of regional convergence at different spatial scales and over different time periods is extensive. This study explores the potential role of variations in European regional technical efficiency as a contributing factor in providing explanation for convergence or divergence. To control for spatial dependence among regions, the paper uses a spatial stochastic fron...