This monograph reviews the econometric literature on the estimation of stochastic frontiers and technical efficiency. Special attention is devoted to current research.

In this paper we consider parametric deterministic frontier models. For example, the production frontier may be linear in the inputs, and the error is purely one-sided, with a known distribution such as exponential or half-normal. The literature contains many negative results for this model....

In this paper, we use data envelopment analysis to evaluate the impact of regulatory reforms on the technical efficiency of 28 Italian airports between 2000 and 2006. The analysis utilizes two model specifications for airport activities: the first includes aeronautical activities, and the second...

The statistical properties of the efficiency estimators based on Data Envelopment Analysis (DEA) are largely unknown. Recent work by Simar et al. and Banker has shown the consistency of the DEA estimators under specific assumptions, and Banker proposes asymptotic tests of whether two subsamples...