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2018 | OriginalPaper | Chapter

48. Frontier Analysis

Author : Pieter Woltjer

Published in: An Economist’s Guide to Economic History

Publisher: Springer International Publishing

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Abstract

A great deal of research in economics and business is devoted to the study of the efficiency of individuals, organisations or entire economies. This chapter introduces a family of innovative techniques that help in the analysis of efficiencies by comparing inputs and outputs to estimate an efficiency frontier. A series of examples from both macroeconomic history and microeconomic history illustrate common areas of application.

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Footnotes
1
Reluctance to adopting linear programming techniques, which underlie frontier analysis, mostly concerns the fact that no account is taken of noise or measurement error in the data and that it may be sensitive to outliers.
 
2
For more details on the growth decomposition, see Kumar and Russell (2002) and Timmer et al. (2016).
 
Literature
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Bakker, Gerben, Nicholas Crafts, and Pieter Woltjer. 2018. The Sources of Growth in a Technologically Progressive Economy: The United States, 1899–1941. The Economic Journal (forthcoming).
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Coelli, Timothy J., Prasada Rao Dodla Sai, Christopher J. O’Donnell, and George Edward Battese. 2005. An Introduction to Efficiency and Productivity Analysis. New York: Springer.
Emrouznejad, Ali, and Guo-liang Yang. 2017. A Survey and Analysis of the First 40 Years of Scholarly Literature in DEA: 1978–2016. Socio-Economic Planning Sciences 61: 4–8.
Färe, Rolf, Shawna Grosskopf, and C.A. Knox Lovel. 1994. Production Frontiers. Cambridge: Cambridge University Press.
Feenstra, Robert, Robert Inklaar, and Marcel Timmer. 2015. The Next Generation of the Penn World Table. American Economic Review 105 (10): 3150–3182.
Koopmans, Tjalling C. 1951. Efficient Allocation of Resources. Econometrica 19: 455–465.
Kumar, S., and R. Russell. 2002. Technological Change, Technological Catch-up, and Capital Deepening: Relative Contributions to Growth and Convergence. American Economic Review 92: 527–548.
Kumbhakar, Subal C., and C.A. Knox Lovell. 2000. Stochastic Frontier Analysis. Cambridge: Cambridge University Press.
Lampe, Markus, and Paul Sharp. 2015. Just Add Milk: A Productivity Analysis of the Revolutionary Changes in Nineteenth-Century Danish Dairying. Economic History Review 68 (4): 1132–1153.
McDonald, John. 2010. Efficiency in the Domesday Economy, 1086: Evidence from Wiltshire Estates. Applied Economics 42 (25): 3231–3240.CrossRef
Salter, W. 1966. Productivity and Technical Change. Cambridge: Cambridge University Press.
Solow, Robert. 1957. Technical Change and the Aggregate Production Function. Review of Economics and Statistics 39 (3): 312–320.
Timmer, Marcel, and Bart Los. 2005. Localized Innovation and Productivity Growth in Asia: An Intertemporal DEA Approach. Journal of Productivity Analysis 23: 47–64.
Timmer, Marcel, Joost Veenstra, and Pieter Woltjer. 2016. The Yankees of Europe? A New View on Technology and Productivity in German Manufacturing in the Early Twentieth Century. The Journal of Economic History 76 (3): 874–908.
Zhu, Joe, ed. 2016. Data Envelopment Analysis: A Handbook of Empirical Studies and Applications. New York: Springer.
Metadata
Title
Frontier Analysis
Author
Pieter Woltjer
Copyright Year
2018
Book
An Economist’s Guide to Economic History

Print ISBN: 978-3-319-96567-3

Electronic ISBN: 978-3-319-96568-0

Copyright Year: 2018

DOI
https://doi.org/10.1007/978-3-319-96568-0_48