The stochastic frontier model was first proposed in the context of production function estimation to account for the effect of technical inefficiency. The inefficiency causes actual output to fall below the potential level (that is, the production frontier) and also raises production cost above...

Government policies are frequently used throughout the world to promote productivity. While some of the policies are designed to work through technology enhancement, others are meant to exert the influence through effciency improvement. It is therefore important to have a program evaluation...