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Piecewise Frontier Analysis

  • Christopher J. O’DonnellEmail author
Chapter

Abstract

Estimating/predicting levels of efficiency involves estimating production frontiers. A widely-used estimation approach involves enveloping scatterplots of data points as tightly as possible without violating any assumptions that have been made about production technologies. Some of the most common assumptions lead to estimated frontiers that are comprised of multiple linear segments (or pieces). The associated frontiers are known as piecewise frontiers. This chapter explains how to estimate the unknown parameters of so-called piecewise frontier models (PFMs). It then explains how the estimated parameters can be used to analyse efficiency and productivity change. The focus is on data envelopment analysis (DEA) estimators.

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© Springer Nature Singapore Pte Ltd. 2018

Authors and Affiliations

  1. 1.University of QueenslandBrisbaneAustralia

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