A MEASURE OF PRODUCTION PERFORMANCE

Suppose there are data available on the value of business output, as m easured by a single variable y and the values of the corresponding inp uts x, with the relationship between y and x determined by an appropri ately chosen production function. It is shown how M-quantile regressio n methods can be used to construct a performance measure that allows a meaningful comparison of the production performance of the businesses . The method is illustrated using survey data collected from farm busi nesses in the pastoral zone of New South Wales and southern Queensland between 1978 and 1987.