Review of frontier models and efficiency analysis: A parametric approach

Abstract

The parametric frontier approach to efficiency measurement has been extensively used in applied research. Within this conceptual framework, techniques for econometric frontier analysis will be described. The purpose of this paper is to present an overview of parametric frontier methods related to the measurement of economic efficiency, focusing on both deterministic and stochastic perspectives. In addition, development and extension of the cross-sectional and panel data context associated with specification of functional forms are also revisited.