Measuring and Decomposing Productivity Change: Stochastic Distance Function Estimation versus Data Envelopment Analysis
AbstractMeasuring productivity change with Malmquist indices has become common practice, because they are easily computed using nonparametric programming techniques and can be readily decomposed into technical and efficiency change. However, this approach is nonstochastic and requires a constant returns to scale assumption to construct the reference technology. We propose estimating productivity change using a stochastic input distance frontier, imposing no restrictions on returns to scale. We derive the analogous decomposition of productivity change and develop a generalized method of moments strategy in which outputs or inputs may be endogenous. We compare two methods in an application to electric utilities.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by American Statistical Association in its journal Journal of Business and Economic Statistics.
Volume (Year): 21 (2003)
Issue (Month): 2 (April)
Contact details of provider:
Web page: http://www.amstat.org/publications/jbes/index.cfm?fuseaction=main
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Miguel SARMIENTOÕ & Andrés CEPEDA & Hernando MUTIS & Juan F. PÉREZ, 2013. "Nueva Evidencia sobre la Eficiencia de la Banca," ARCHIVOS DE ECONOMÃA 010705, DEPARTAMENTO NACIONAL DE PLANEACIÓN.
- Sauer, Johannes, 2008.
"Quota Deregulation and Organic versus Conventional Milk – A Bayesian Distance Function Approach,"
2008 Annual Meeting, July 27-29, 2008, Orlando, Florida
6425, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Sauer, Johannes, 2008. "Quota Deregulation and Organic versus Conventional Milk – A Bayesian Distance Function Approach," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36869, Agricultural Economics Society.
- C.J. O'Donnell, 2011. "The Sources of Productivity Change in the Manufacturing Sectors of the U.S. Economy," CEPA Working Papers Series WP072011, School of Economics, University of Queensland, Australia.
- Rolf Färe & Carlos Martins-Filho & Michael Vardanyan, 2010. "On functional form representation of multi-output production technologies," Journal of Productivity Analysis, Springer, vol. 33(2), pages 81-96, April.
- Fabrizio Erbetta & Carmelo Petraglia, 2008.
"Drivers of regional efficiency differentials in Italy: technical inefficiency or allocative distortions?,"
CERIS Working Paper
200802, Institute for Economic Research on Firms and Growth - Moncalieri (TO).
- Fabrizio Erbetta & Carmelo Petraglia, 2011. "Drivers of Regional Efficiency Differentials in Italy: Technical Inefficiency or Allocative Distortions?," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 42(3), pages 351-375, 09.
- W. Diewert & Kevin Fox, 2010. "Malmquist and Törnqvist productivity indexes: returns to scale and technical progress with imperfect competition," Journal of Economics, Springer, vol. 101(1), pages 73-95, September.
- Guohua Feng & Apostolos Serletis, 2009.
"Efficiency, Technical Change, and Returns to Scale in Large U.S. Banks: Panel Data Evidence from an Output Distance Function Satisfying Theoretical Regularity,"
Monash Econometrics and Business Statistics Working Papers
5/09, Monash University, Department of Econometrics and Business Statistics.
- Feng, Guohua & Serletis, Apostolos, 2010. "Efficiency, technical change, and returns to scale in large US banks: Panel data evidence from an output distance function satisfying theoretical regularity," Journal of Banking & Finance, Elsevier, vol. 34(1), pages 127-138, January.
- Walter Briec & Kristiaan Kerstens, 2008.
"The Luenberger Productivity Indicator: An Economic Specifcation Leading to Infeasibilities,"
2008-ECO-09, IESEG School of Management.
- Briec, Walter & Kerstens, Kristiaan, 2009. "The Luenberger productivity indicator: An economic specification leading to infeasibilities," Economic Modelling, Elsevier, vol. 26(3), pages 597-600, May.
- Dorfman, Jeffrey H. & Atkinson, Scott E., 2002. "Multiple Comparisons With The Best: Bayesian Precision Measures Of Efficiency Rankings," 2002 Annual meeting, July 28-31, Long Beach, CA 19800, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Walter Briec & Kristiaan Kerstens, 2008. "Infeasibility and Directional Distance Functions with Application to the Determinateness of the Luenberger Productivity Indicator," Working Papers 2008-ECO-11, IESEG School of Management.
- Ana Rodríguez-Álvarez & Ignacio Rosal & José Baños-Pino, 2007. "The cost of strikes in the Spanish mining sector: modelling an undesirable input with a distance function," Journal of Productivity Analysis, Springer, vol. 27(1), pages 73-83, February.
- Goto, Mika & Tsutsui, Miki, 2008. "Technical efficiency and impacts of deregulation: An analysis of three functions in U.S. electric power utilities during the period from 1992 through 2000," Energy Economics, Elsevier, vol. 30(1), pages 15-38, January.
- Tamini, Lota D. & Larue, Bruno, 2009.
"Technical and Environmental efficiencies and Best Management Practices in Agriculture,"
18964, University Library of Munich, Germany.
- Lota D. Tamini & Bruno Larue & Gale West, 2012. "Technical and environmental efficiencies and best management practices in agriculture," Applied Economics, Taylor and Francis Journals, vol. 44(13), pages 1659-1672, May.
- Angelo Zago, 2005. "Tecnhnology estimation for quality pricing in supply-chain relationships," Working Papers 27, University of Verona, Department of Economics.
- Tim Coelli & Gholamreza Hajargasht & C.A. Knox Lovell, 2008. "Econometric Estimation of an Input Distance Function in a System of Equations," CEPA Working Papers Series WP012008, School of Economics, University of Queensland, Australia.
- Valentin Zelenyuk, 2011. "A Note on Equivalences in Measuring Returns to Scale in Multi-output-multi-input Technologies," CEPA Working Papers Series WP052011, School of Economics, University of Queensland, Australia.
- Robert G. Chambers & Rolf Färe & Shawna Grosskopf & Michael Vardanyan, 2008.
"Generalized Quadratic Revenue Functions,"
CESifo Working Paper Series
2404, CESifo Group Munich.
- Johannes Sauer, 2010. "Deregulation and dairy production systems: a Bayesian distance function approach," Journal of Productivity Analysis, Springer, vol. 34(3), pages 213-237, December.
- Supawat Rungsuriyawiboon & Tim Coelli, 2004. "Regulatory Reform and Economic Performance in US Electricity Generation," CEPA Working Papers Series WP062004, School of Economics, University of Queensland, Australia.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
If references are entirely missing, you can add them using this form.