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Allocative efficiency measurement with endogenous prices

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Author Info

  • Johnson, Andrew L.
  • Ruggiero, John

Abstract

In the nonparametric measurement of allocative efficiency, output prices are fixed. If prices are endogenous, the overall output in the market determines the allocative efficient point. We develop an alternative semi-nonparametric model that allows prices to be endogenously determined.

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File URL: http://www.sciencedirect.com/science/article/B6V84-51XY01N-4/2/1353ac844a9eea22c70f69b8ff6438d1
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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 111 (2011)
Issue (Month): 1 (April)
Pages: 81-83

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Handle: RePEc:eee:ecolet:v:111:y:2011:i:1:p:81-83

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Web page: http://www.elsevier.com/locate/ecolet

Related research

Keywords: Nonparametric frontiers Allocative efficiency Economic efficiency Production functions;

References

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  1. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
  2. Cherchye, Laurens & Kuosmanen, Timo & Post, Thierry, 2002. "Non-parametric production analysis in non-competitive environments," International Journal of Production Economics, Elsevier, vol. 80(3), pages 279-294, December.
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Cited by:
  1. Portela, Maria Conceição A. Silva & Thanassoulis, Emmanuel, 2014. "Economic efficiency when prices are not fixed: disentangling quantity and price efficiency," Omega, Elsevier, vol. 47(C), pages 36-44.
  2. Saeideh Fallah-Fini & Konstantinos Triantis & Andrew Johnson, 2014. "Reviewing the literature on non-parametric dynamic efficiency measurement: state-of-the-art," Journal of Productivity Analysis, Springer, vol. 41(1), pages 51-67, February.

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