Productivity Measurement with Data Envelopment Analysis and Stochastic Frontier Analysis: A Review A

In essence this im- the frontier of the current technology set, plies that the determining component of a which determines the best input-output firm’s productivity turns out to be the tech- combinations. [...] In the actual world inefficiency is in ratio or difference form depending on the everywhere! particular functional form of the distance The stage of the play is occupied by measures involved, is called allocative effi- a certain number of so-called decision- ciency. [...] ternatives: functional forms for the pro- Productivity change can be measured by duction function (in case of single output, means of the Solow residual, or by means M=1), the output distance function, the of a member of the Moorsteen-Bjurek, cost function, the revenue function, and the Caves-Christensen-Diewert, or Malmquist- profit function. [...] All these sic model in Chapter 11, the developments papers were circling around productivity, in the field of SFA are surveyed in the the topic of the book. [...] the models follow the (x,y)-format; that is, At the lowest level of aggregation one thus on the assumption that x covers all the has to work with sums of quantities and inputs and y all the outputs of a DMU, nominal values.