This chapter is a survey of developments in stochastic frontier modelling. The literature on stochastic frontiers has grown substantially in the 42 years since the seminal work by Aigner et al. (J. Econom 6 (1): 21–37, 1977). There exist many surveys of this literature that cover a broad range...

This chapter revises the literature on discrete output stochastic frontier models. We suggest an encompassing framework within which to develop new models of production frontier when the output variable is discrete-valued. We discuss specific applications of the framework. In particular, the...