Intertemporal Dominance and Panel Data

This paper is concerned with the measurement of intertemporal performance for similar production activities. It abandons the Farrell tradition which relies on efficient production frontiers, instead it focuses on pure dominance relationships among observed activities. The sole assumption on the technology is that integer combinations of observed activities are possible. In this setup, it seems natural to utilize vectorial indices of dominance as opposed to the traditional radial Farrell indices. The framework is applied to Danish hospitals from 1987-1989.