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INTRODUCTION
Technical efficiency is a technological concept that basically focuses on production processes and task organisation; it thus deals with the consequences of inadequate exploitation of a chosen process. A manufacturer is considered to be technically efficient if production occurs at the frontier of the set of production potentials.
Knowing the production function beforehand is therefore the basic requirement to achieving an operative measurement of efficiency. However, if we accept the definition of frontier production function, which we might call “theoretical”, we come up against the fact that it is impossible to apply in empirical analysis, as it cannot in practice be observed...
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