Metafrontier efficiency analysis with convex and non-convex metatechnologies by stochastic nonparametric envelopment of data

Abstract

This paper suggests how stochastic nonparametric envelopment of data (StoNED) can be extended as an estimator in the metafrontier efficiency analysis. Both convex and non-convex metatechnologies are formed and a semi-nonparametric estimation technique for the corresponding metafrontiers is developed. Remaining consistent with the metafrontier theory, the resulting estimated metafrontiers always envelope the estimated group frontiers.