A robust approach to the measurement of Farrell efficiency
- 1 February 1988
- journal article
- research article
- Published by Taylor & Francis in Applied Economics
- Vol. 20 (2) , 273-283
- https://doi.org/10.1080/00036848800000010
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.Keywords
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