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| Volume 1, No. 2, August 2002
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| Technology
Gap, Efficiency, and a Stochastic Metafrontier Function |
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| George
E. Battese |
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| University
of New England, Australia |
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D.
S. Prasada Rao |
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University
of New England, Australia |
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| Abstract |
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| This
paper considers a stochastic metafrontier function to investigate
the technical efficiencies of firms in different groups that may
not have the same technology. A decomposition of output is presented
involving the technology gap and technical efficiency ratios for
firms in a group relative to the best practice in the industry.
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Key words:
efficiencies; stochastic metafrontier; technology gap |
| JEL
classification:
C5; D24 |
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