Skip to main content

Frontier Analysis

  • Chapter
  • First Online:
Book cover An Economist’s Guide to Economic History

Part of the book series: Palgrave Studies in Economic History ((PEHS))

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.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 49.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 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. 2.

    For more details on the growth decomposition, see Kumar and Russell (2002) and Timmer et al. (2016).

Reading List

  • Allen, Robert. 2012. Technology and the Great Divergence: Global Economic Development since 1820. Explorations in Economic History 49 (1): 1–16.

    Article  Google Scholar 

  • 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).

    Google Scholar 

  • Bernard, Andrew B., and Charles I. Jones. 1996. Technology and Convergence. The Economic Journal 106: 1037–1044.

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • Färe, Rolf, Shawna Grosskopf, and C.A. Knox Lovel. 1994. Production Frontiers. Cambridge: Cambridge University Press.

    Google Scholar 

  • Feenstra, Robert, Robert Inklaar, and Marcel Timmer. 2015. The Next Generation of the Penn World Table. American Economic Review 105 (10): 3150–3182.

    Google Scholar 

  • Koopmans, Tjalling C. 1951. Efficient Allocation of Resources. Econometrica 19: 455–465.

    Google Scholar 

  • 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.

    Google Scholar 

  • Kumbhakar, Subal C., and C.A. Knox Lovell. 2000. Stochastic Frontier Analysis. Cambridge: Cambridge University Press.

    Google Scholar 

  • 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.

    Google Scholar 

  • McDonald, John. 2010. Efficiency in the Domesday Economy, 1086: Evidence from Wiltshire Estates. Applied Economics 42 (25): 3231–3240.

    Article  Google Scholar 

  • Salter, W. 1966. Productivity and Technical Change. Cambridge: Cambridge University Press.

    Google Scholar 

  • Solow, Robert. 1957. Technical Change and the Aggregate Production Function. Review of Economics and Statistics 39 (3): 312–320.

    Google Scholar 

  • Timmer, Marcel, and Bart Los. 2005. Localized Innovation and Productivity Growth in Asia: An Intertemporal DEA Approach. Journal of Productivity Analysis 23: 47–64.

    Google Scholar 

  • 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.

    Google Scholar 

  • Zhu, Joe, ed. 2016. Data Envelopment Analysis: A Handbook of Empirical Studies and Applications. New York: Springer.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2018 The Author(s)

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Woltjer, P. (2018). Frontier Analysis. In: Blum, M., Colvin, C. (eds) An Economist’s Guide to Economic History. Palgrave Studies in Economic History. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-96568-0_48

Download citation

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

  • Published:

  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-319-96567-3

  • Online ISBN: 978-3-319-96568-0

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

Publish with us

Policies and ethics