Frontier production functions: Improved procedures for estimation and application
This paper develops improved estimating techniques for frontier production functions and measures of technical efficiency. A clustering analysis procedure is introduced to isolate subsets of data observations on the basis of qualitative considerations. A dominance test is formulated to screen out data observations which will not influence the frontier production function. A computational algorithm is presented to efficiently implement these procedures. These techniques are applied to the steam-electric generating industry and discussed.
Computers & Operations Research
Nelson, P. A.,
Jambekar, A. B.
Frontier production functions: Improved procedures for estimation and application.
Computers & Operations Research,
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