Abstract
Multilevel modelling has gained ground in the analysis of clustered data over its counterparts, aggregation and disaggregation. This is evidenced by a recent increase in its application in efficiency analysis, an area that is laden with clustered data. Conventional efficiency analysis models have relied on the reduction of tiered data to a single level by aggregation, disaggregation or, to some extent, ignoring the structure of data by discarding the variables, outside the level of the unit of analysis. The article presents a review of existing literature on multilevel models as an entity. Panel data, a special case of multilevel data, are discussed. Attention is then given to how these (multilevel) models, together with panel data, have found their way in efficiency analysis in literature. Keywords: multilevel, frontier, clustered data.
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