Review of Frontier Models and Efficiency Analysis: A Parametric Approach

Parametric frontier approach to measurement efficiency has been extensively used in applied research. Within this conceptual framework, techniques for econometric frontier analysis will be described. The purpose of this paper is to present an overview of parametric frontier methods related to the measurement of economic efficiency, focusing on both deterministic and stochastic perspective. Further, the development and extension of the cross- sectional and the panel data context associated to the issue of the specification of functional forms are also revisited