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MEASUREMENT OF FIRM‐SPECIFIC TECHNICAL EFFICIENCY: A COMPARISON OF METHODS
Author(s) -
Ekanayake S. A. B.,
Jayasuriya S. K.
Publication year - 1987
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.1987.tb01032.x
Subject(s) - econometrics , stochastic frontier analysis , sri lanka , function (biology) , production (economics) , statistics , economics , yield (engineering) , least squares function approximation , ordinary least squares , mathematics , computer science , microeconomics , estimator , materials science , evolutionary biology , socioeconomics , biology , metallurgy , tanzania
Various procedures have been used for the measurement of firm‐specific technical efficiency. Most commonly used methods are static and deterministic. Deterministic methods tend to yield biased estimates of technical efficiency and to overestimate the variability of technical efficiency over time. These conclusions are illustrated by applying stochastic frontier production function analysis and corrected ordinary least squares procedures to farm data from Sri Lanka.