A Metafrontier Production Function for Estimation of Technical Efficiencies and Technology Gaps for Firms Operating Under Different Technologies

Title
A Metafrontier Production Function for Estimation of Technical Efficiencies and Technology Gaps for Firms Operating Under Different Technologies
Publication Date
2004
Author(s)
Battese, George Edward
Rao, Dodla Sai
O'Donnell, Christopher John
Type of document
Journal Article
Language
en
Entity Type
Publication
Publisher
Kluwer Academic Publishers
Place of publication
Dordrecht, Netherlands
DOI
10.1023/B:PROD.0000012454.06094.29
UNE publication id
une:6294
Abstract
This paper presents a metafrontier production function model for firms in different groups having different technologies. The metafrontier model enables the calculation of comparable technical efficiencies for firms operating under different technologies. The model also enables the technology gaps to be estimated for firms under different technologies relative to the potential technology available to the industry as a whole. The metafrontier model is applied in the analysis of panel data on garment firms in five different regions of Indonesia, assuming that the regional stochastic frontier production function models have technical inefficiency effects with the time-varying structure proposed by Battese and Coelli (1992).
Link
Citation
Journal of Productivity Analysis, 21(1), p. 91-103
ISSN
1573-0441
0895-562X
Start page
91
End page
103

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