| Sumario: | Part of a special issue on efficiency analysis in finance and macroeconomics. In an introduction to the special issue, the writers briefly describe the technique of efficiency analysis. Drawing on best observed practice, efficiency analysis first constructs an operating frontier and then considers whether the economic units under review operate on the observed frontier (efficient) or below it (inefficient). One of the principal features of efficiency analysis is that, unlike typical econometric approaches, it does not always need assumptions about the functional form of the frontier and the statistical distribution of the error term.
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