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The Estimation of Meta-Frontiers by Constrained Maximum Likelihood

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  • Alexandre Repkine

    (Department of Economics, Korea University, Seoul, Republic of Korea)

Abstract

Existing approaches to the meta-frontier estimation are largely based on the linear programming technique, which does not hinge on any statistical underpinnings. We suggest estimating meta-frontiers by constrained maximum likelihood subject to the constraints that specify the way in which the estimated meta-frontier overarches the individual group frontiers. We present a methodology that allows one to either estimate meta-frontiers using the conventional set of constraints that guarantees overarching at the observed combinations of production inputs, or to specify a range of inputs within which such overarching will hold. In either case the estimated meta-frontier coefficients allow for the statistical inference that is not straightforward in case of the linear programming estimation. We apply our methodology to the world¡¯s FAO agricultural data and find similar estimates of the meta-frontier parameters in case of the same set of constraints. On the contrary, the parameter estimates differ a lot between different sets of constraints.

Suggested Citation

  • Alexandre Repkine, 2010. "The Estimation of Meta-Frontiers by Constrained Maximum Likelihood," Discussion Paper Series 1011, Institute of Economic Research, Korea University.
    • Handle: RePEc:iek:wpaper:1011
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    File URL: http://econ.korea.ac.kr/~ri/WorkingPapers/w1011.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    technical efficiency; meta-frontiers; constrained maximum likelihood;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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