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

Author(s)
Battese, George Edward
Rao, Dodla Sai
O'Donnell, Christopher John
Publication Date
2004
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).
Citation
Journal of Productivity Analysis, 21(1), p. 91-103
ISSN
1573-0441
0895-562X
Link
Publisher
Kluwer Academic Publishers
Title
A Metafrontier Production Function for Estimation of Technical Efficiencies and Technology Gaps for Firms Operating Under Different Technologies
Type of document
Journal Article
Entity Type
Publication

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