生产率与效率分析lecture8-随机前沿效率1.ppt

Slide # The Stochastic Frontier Analysis (SFA) The Stochastic Frontier - History Farrell (1957) 2 measures of firm efficiency technical efficiency (TE) obtain maximal output from given set of inputs allocative efficiency (AE) use inputs in optimal proportions, given input prices History (cont.) Recall technical efficiency (TE) allocative efficiency (AE) Focus on TE only For simplicity in explanation of stochastic frontiers (SF) History (cont.) To calculate efficiency must know production function of fully efficient firm Never know it Farrell estimate fully efficient production function