In this paper, we propose an alternative econometric framework for estimating and decomposing productivity change that does not require a distribution for inefficiency or the uncorrelatedness between inefficiency and the regressors. We develop our methodology for the input-oriented radial...

A large literature measures the allocative and technical efficiency of a set of firms using econometric techniques to estimate stochastic production frontiers or distance functions. Typically, researchers compute only the precision of individual efficiency rankings. Recently, Horrace and Schmidt...

A substantial literature has been generated on the estimation of allocative and technical inefficiency using static production, cost, profit, and distance functions. We develop a dynamic shadow distance system that integrates dynamic adjustment costs into a long-run shadow cost-minimization...