This textbook introduces essential topics and techniques in production and efficiency analysis
and shows how to apply these methods using the statistical software R. Numerous small
simulations lead to a deeper understanding of random processes assumed in the models and of the
behavior of estimation techniques. Step-by-step programming provides an understanding of
advanced approaches such as stochastic frontier analysis and stochastic data envelopment
analysis. The text is intended for master students interested in empirical production and
efficiency analysis. Readers are assumed to have a general background in production economics
and econometrics typically taught in introductory microeconomics and econometrics courses.
