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Technology Gap, Efficiency, and a Stochastic Metafrontier Function

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Author Info

  • George E. Battese

    (University of New England, Australia)

  • D. S. Prasada Rao

    (University of New England, Australia)

Abstract

This paper considers a stochastic metafrontier function to investigate the technical efficiencies of firms in different groups that may not have the same technology. A decomposition of output is presented involving the technology gap and technical efficiency ratios for firms in a group relative to the best practice in the industry.

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Bibliographic Info

Article provided by College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan in its journal International Journal of Business and Economics.

Volume (Year): 1 (2002)
Issue (Month): 2 (August)
Pages: 87-93

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Handle: RePEc:ijb:journl:v:1:y:2002:i:2:p:87-93

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Postal: 100 Wenhwa Road, Seatwen, Taichung
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Related research

Keywords: efficiencies; stochastic metafrontier; technology gap;

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References

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  1. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
  2. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
  3. Lau, Lawrence J. & Yotopoulos, Pan A., 1989. "The meta-production function approach to technological change in world agriculture," Journal of Development Economics, Elsevier, vol. 31(2), pages 241-269, October.
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Citations

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Cited by:
  1. Chung, Yeimin & Heshmati, Almas, 2013. "Measurement of Environmentally Sensitive Productivity Growth in Korean Industries," IZA Discussion Papers 7235, Institute for the Study of Labor (IZA).
  2. Otieno, David Jakinda & Hubbard, Lionel J. & Ruto, Eric, 2011. "Technical efficiency and technology gaps in beef cattle production systems in Kenya: A stochastic metafrontier analysis," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108947, Agricultural Economics Society.
  3. Medhin, Haileselassie A. & Köhlin, Gunnar, 2008. "Soil Conservation and Small-Scale Food Production in Highland Ethiopia: A Stochastic Metafrontier Approach," Discussion Papers dp-08-22-efd, Resources For the Future.
  4. Kristof De Witte & Rui C. Marques, 2008. "Capturing the environment, a metafrontier approach to the drinking water sector," Center for Economic Studies - Discussion papers ces0804, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  5. Mercedes Beltrán-Esteve & José A. Gómez-Limón & Andrés J. Picazo-Tadeo & Ernest Reig-Martínez, 2012. "A metafrontier directional distance function approach to assessing eco-efficiency," Working Papers 1206, Department of Applied Economics II, Universidad de Valencia.
  6. Breustedt, Gunnar & Francksen, Tammo & Latacz-Lohmann, Uwe, 2007. "Estimating Non-Concave Metafrontiers Using Data Envelope Analysis," 47th Annual Conference, Weihenstephan, Germany, September 26-28, 2007 7600, German Association of Agricultural Economists (GEWISOLA).
  7. Ibrahim Mosaad El-Atroush & Gabriel Montes-Rojas, 2011. "Technical Efficiency Estimation via Metafrontier Technique with Factors that Affect Supply Chain Operations," International Journal of Business and Economics, College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 10(2), pages 117-138, August.
  8. C.J. O'Donnell & S. Fallah-Fini & K, Triantis, 2011. "Comparing Firm Performance Using Transitive Productivity Index Numbers in a Meta-frontier Framework," CEPA Working Papers Series WP082011, School of Economics, University of Queensland, Australia.
  9. Huang, Yi-Ju & Chen, Ku-Hsieh & Yang, Chih-Hai, 2010. "Cost efficiency and optimal scale of electricity distribution firms in Taiwan: An application of metafrontier analysis," Energy Economics, Elsevier, vol. 32(1), pages 15-23, January.
  10. Oh, Dong-hyun, 2010. "A metafrontier approach for measuring an environmentally sensitive productivity growth index," Energy Economics, Elsevier, vol. 32(1), pages 146-157, January.
  11. Jaap W.B. Bos & Ryan C.R. van Lamoen & James W. Kolari, 2009. "Competition and Innovation: Evidence from Financial Services," Working Papers 09-16, Utrecht School of Economics.
  12. Ku-Hsieh Chen & Hao-Yen Yang, 2011. "A cross-country comparison of productivity growth using the generalised metafrontier Malmquist productivity index: with application to banking industries in Taiwan and China," Journal of Productivity Analysis, Springer, vol. 35(3), pages 197-212, June.
  13. D.S. Prasada Rao & Christopher J. O'Donnell & George E. Battese, 2003. "Metafrontier Functions for the Study of Inter-regional Productivity Differences," CEPA Working Papers Series WP012003, School of Economics, University of Queensland, Australia.
  14. Wang, Xiaobing & Hockmann, Heinrich, 2012. "Technical Efficiency Under Producer’S Individual Technology: A Metafrontier Analysis," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126755, International Association of Agricultural Economists.
  15. Chen, Ku-Hsieh & Huang, Yi-Ju & Yang, Chih-Hai, 2009. "Analysis of regional productivity growth in China: A generalized metafrontier MPI approach," China Economic Review, Elsevier, vol. 20(4), pages 777-792, December.
  16. Mainak Mazumdar & Meenakshi Rajeev, 2009. "Comparing the Efficiency and Productivity of the Indian Pharmaceutical Firms: A Malmquist-Meta-Frontier Approach," International Journal of Business and Economics, College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 8(2), pages 159-181, August.

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