Authors
Ku-Hsieh Chen, Soumendra N Ghosh
Publication date
2014/4/1
Journal
The Journal of Developing Areas
Pages
223-253
Publisher
College of Business TENNESSEE STATE UNIVERSITY
Description
In the domain of measuring productivity, the stochastic frontier (SF) model has advanced in leaps and bounds and attracted a large amount of academic attention. Inherently, the model utilises input/output combinations of production units as references to construct a frontier for measuring efficiency. Silent curiosity has followed the model for years in regard to whether all the units actually share an identical technology, or more specifically, how many technological groups should be included in the sample observations. This study directly spotlights the perplexity by employing econometric concepts and techniques to make the data talk and to show the due grouping points. Using the computer, communications, and audio and video electronics products manufacturing sectors during 2001 in Taiwan as the sample, the empirical work revealed that the production possibility set of the sample industry should be divided into …
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