Measuring productive efficiency for nonprofit organizations has posed a
great challenge to applied researchers today. The problem has many
facets and diverse implications for a number of disciplines such as
economics, applied statistics, management science and information
theory. This monograph discusses four major areas, which emphasize the
applied economic and econometric as. pects of the production frontier
analysis: A. Stochastic frontier theory, B. Data envelopment analysis,
C. Clustering and estimation theory, D. Economic and managerial
applications Besides containing an up-to-date survey of the mos. t
recent developments in the field, the monograph presents several new
results and theorems from my own research. These include but are not
limited to the following: (1) interface with parametric theory, (2)
minimax and robust concepts of production frontier, (3) game-theoretic
extension of the Farrell and Johansen models, (4) optimal clustering
techniques for data envelopment analysis and (5) the dynamic and
stochastic generalizations of the efficiency frontier at the micro and
macro levels. In my research work in this field I have received great
support and inspiration from Professor Abraham Charnes of the University
of Texas at Austin, who has basically founded the technique of data
envelopment analysis, developed it and is still expanding it. My
interactions with him have been most fruitful and productive. I am
deeply grateful to him. Finally, I must record my deep appreciation to
my wife and two children for their loving and enduring support. But for
their support this work would not have been completed.