Kumbhakar S.C., Knox Lovell C.A. Stochastic frontier analysis

Cambridge: Cambridge University Press, 2003. — 343 p.This book develops econometric techniques for the estimation of production, cost and profit frontiers, and for the estimation of the technical and economic efficiency with which producers approach these frontiers. Since these frontiers envelop rather than intersect the data, and since the authors continue to maintain the traditional econometric belief in the presence of external forces contributing to random statistical noise, the work is titled Stochastic Frontier Analysis.