Detecting Changes in Production Frontiers

Flávio Ziegelmann (UFRGS)

Abstract: We study the problem of estimating locations in time at which the level of technology in an economy changes when given a sequence of time ordered inputs and outputs. We approach the problem through the lens of nonparametric frontier analysis with frontiers that expand sharply and globally over time, and develop an offline change point detection procedure. Simulation studies and real data examples are also presented to illustrate the practical value of our methods.