Production frontier estimation to measure efficiency: A critical evaluation in light of data envelopment analysis

The ranking and measurement of efficiency of decision-making units by two methods—data envelopment analysis and frontier production function—may not always lead to identical results. In this framework we attempt here a critical evaluation of the frontier production function theory in terms of theoretical and empirical implications. It is shown that under certain conditions the two approaches to effciency measurement may lead to identical results.