This paper addresses some of the recent developments in efficiency measurement using stochastic frontier SF models in some selected areas. The following three issues are discussed in details. First, estimation of SF models with input-oriented technical efficiency. Second, estimation of latent class models to address technological heterogeneity as well as heterogeneity in economic behavior. Fina...

This paper analyzes the effects of political and economic institutions on efficiency of transition economies over the 1995-2005 period. Perpetual Inventory Method is used to construct capital series for these countries, and then stochastic production frontier analysis is used to estimate the efficiency scores and effects of institutions at the same time. The empirical results show that better i...

This paper examines relative performance of electricity distribution systems in the UK and Japan between 1985 and 1998 using costbased benchmarking with data envelopment analysis (DEA) and stochastic frontier analysis (SFA) methods. The results suggest that the productivity gain in the UK electricity distribution has been larger than in the Japanese sector. In particular, productivity growth ac...

This article studies tail behavior for the error components in stochastic frontier model, where one component has bounded support on side, and other unbounded both sides. Under weak assumptions components, we derive nonparametric tests thin-tailed distributional imposed these two components. The are useful diagnostic tools analysis kernel deconvolution density estimation. A simulation study app...