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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O’Donnell, C.J., Rao, D.S.P. & Battese, G.E. Metafrontier frameworks for the study of firm-level efficiencies and technology ratios. Empirical Economics 34, 231–255 (2008). https://doi.org/10.1007/s00181-007-0119-4
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DOI: https://doi.org/10.1007/s00181-007-0119-4