STOCHASTIC PRODUCTION FRONTIER: FRAMEWORK AND DEVELOPMENT
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Keywords

Stochastic Frontier Approach, Time-variant Technical Efficiency, Panel data

How to Cite

Suyanto, S. (2012). STOCHASTIC PRODUCTION FRONTIER: FRAMEWORK AND DEVELOPMENT. Sosial & Humaniora, 5(2), 88-97. https://doi.org/10.24123/jsh.v5i2.686

Abstract

This paper explores the framework and development of stochastic frontier Approach (SFA). The original idea of the SFA and its theoretical framework is discussed to provide a basic foundation of the approach. The development of SFA with more flexible distribution assumptions follows the pioneering model. Experts also
develop the time-variant technical efficiency models, in order to allow variation between times for a production unit. The most recent development is the panel data SFA, which includes the two-stage and the one-stage procedures.

https://doi.org/10.24123/jsh.v5i2.686
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