A robust approach to the measurement of Farrell efficiency |
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Authors: | Jati K Sengupta |
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Institution: | Department of Economics , University of California , Santa Barbara , CA 93106 , USA |
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Abstract: | Measurement of efficiency of the frontier production function by Farrell's convex hull method is generalized here in two aspects. One develops a minimax method of estimation by following the Chebyshev principle and the other develops a dummy-variable method of stratifying the entire data set before ordinary regressions are performed to estimate the production frontier. An empirical application to educational production functions illustrates these methods. |
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