We propose a set of consistency conditions that frontier efficiencymeasures should meet to be most usefd for re@atory analysis or other purposes. The efficiency estimates shotid be consistent in their efficiency levels, rankings, and identification of best and worst fus, consistent over time and with competitiveconditions in the market, and consistent with standard nonfrontier measures of performance. We provide evidence on these conditions by evaluating and comparing efficiency estimates on U.S. bank efficiency from variants of all four of the major approaches-DEA, SFA, TFA, and DFA-and fmd mixed results.

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We propose a set of consistency conditions that frontier efficiencymeasures should meet to be most usefd for re@atory analysis or other purposes. The efficiency estimates shotid be consistent in their efficiency levels, rankings, and identification of best and worst fus, consistent over time and with competitiveconditions in the market, and consistent with standard nonfrontier measures of performance. We provide evidence on these conditions by evaluating and comparing efficiency estimates on U.S. bank efficiency from variants of all four of the major approaches-DEA, SFA, TFA, and DFA-and fmd mixed results.

Productivity growth is a major source of economic growth; thus, an understanding of how and why productivity measures change is of great interest to economists and policymakers. This paper explores the relationship between observed total factor productivity (TFP) growth, defined using an index number approach, and examines changes in returns to scale, cost efficiency, and technology. Several decompositions are developed, using alternatively production and cost frontiers. The last decomposition developed also allows for multiple outputs.

A thorough understanding of changes in productivity measures is important to economists and policymakers, because productivity growth is a major source of economic growth. This article explores the relationship between changes in total factor productivity (TFP) growth, defined using an index number approach, and changes in returns to scale, cost efficiency, and technology. Several decompositions are developed, using alternatively production and cost frontiers. The last decomposition developed also allows for multiple outputs.