Estimation of technical inefficiency in manufacturing industry

Green, Alison; Harris, Christopher and Mayes, David (1991). Estimation of technical inefficiency in manufacturing industry. Applied Economics, 23(10) pp. 1637–1647.

DOI: https://doi.org/10.1080/00036849100000128

Abstract

An extension of the method of estimation of technical ineficiency is presented based on the stochastic production frontier approach. A derivation of the estimation procedure is given and the technique applied at the industry level. The choice of production function is considered and empirical results pertaining to Australia and the UK are presented.

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