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Labour-Use Efficiency in Swedish Social Insurance Offices

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  • Kumbhakar, Subal C
  • Hjalmarsson, Lennart

Abstract

This paper considers the estimation of frontier production functions in panel data models. It proposes a multi-stage method to obtain estimates of (1) the parameters of a flexible input requirement function and (2) technical inefficiency decomposed into time-invariant (firm-specific), time-varying, and the residual components. The proposed method is used to analyze labor-use efficiency of Swedish local social insurance offices on the basis of a large panel of observations during the time period 1974-84. Empirical results show: (1) substantial variations in labor-use efficiency among these offices, with the mean efficiencies declining over time; (2) presence of economies of scale, thereby meaning that most of the offices were of suboptimal size. Copyright 1995 by John Wiley & Sons, Ltd.

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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 10 (1995)
Issue (Month): 1 (Jan.-March)
Pages: 33-47

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Handle: RePEc:jae:japmet:v:10:y:1995:i:1:p:33-47

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Cited by:
  1. Masso, Jaan & Heshmati, Almas, 2003. "The Optimality and Overuse of Labour in Estonian Manufacturing Enterprises," IZA Discussion Papers 884, Institute for the Study of Labor (IZA).
  2. Subal Kumbhakar & Anatoly Peresetsky, 2013. "Cost efficiency of Kazakhstan and Russian banks: results from competing panel data models-super-1," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 6(1), pages 88-113, March.
  3. Subal Kumbhakar & Gudbrand Lien & J. Hardaker, 2014. "Technical efficiency in competing panel data models: a study of Norwegian grain farming," Journal of Productivity Analysis, Springer, vol. 41(2), pages 321-337, April.
  4. Piekkola, Hannu, 2006. "Tax cuts and employment: Evidence from Finnish linked employer-employee data," Discussion Papers 1041, The Research Institute of the Finnish Economy.
  5. Haouas Ilham & Yagoubi Mahmoud & Heshmati Almas, 2003. "Labor-use Efficiency in Tunisian Manufacturing Industiries," Review of Middle East Economics and Finance, De Gruyter, vol. 1(3), pages 1-20, December.
  6. Annageldy Arazmuradov & Gianmaria Martini & Davide Scotti, 2011. "Determinants of Total Factor Productivity in Former Soviet Union Economies: A Stochastic Frontier Approach," Working Papers 1105, Department of Economics and Technology Management, University of Bergamo.
  7. Lovell, C. A. Knox, 1995. "Econometric efficiency analysis: A policy-oriented review," European Journal of Operational Research, Elsevier, vol. 80(3), pages 452-461, February.
  8. Mohanty, Sunil K. & Lin, Winston T. & Lin, Hong-Jen, 2013. "Measuring cost efficiency in presence of heteroskedasticity: The case of the banking industry in Taiwan," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 26(C), pages 77-90.
  9. Heshmati, Almas & Ncube, Mkhululi, 1998. "An Econometric Model of Employment in Zimbabwe's Manufacturing Industries," Working Paper Series in Economics and Finance 277, Stockholm School of Economics, revised 15 Aug 2003.
  10. Schelleman,C & Maijoor,S, 2000. "Benchmarking the production of audit services: An efficiency frontier approach," Research Memorandum 022, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  11. Karlaftis, Matthew G. & Tsamboulas, Dimitrios, 2012. "Efficiency measurement in public transport: Are findings specification sensitive?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(2), pages 392-402.
  12. Dimitris Christopoulos & John Loizides & Efthymios G. Tsionas, 2001. "Efficiency in European railways: Not as inefficient as one might think," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 63-88, May.
  13. John Buckell & Andrew Smith & Roberta Longo & David Holland, 2013. "Health inefficiency and unobservable heterogeneity - empirical evidence from pathology services in the UK National Health Service," Working Papers 1307, Academic Unit of Health Economics, Leeds Institute of Health Sciences, University of Leeds.
  14. Heshmati, Almas & Ncube, Mkhululi, 1998. "A Flexible Adjustment Model of Employment with Application to Zimbabwe's Manufacturing Industries," Working Paper Series in Economics and Finance 278, Stockholm School of Economics, revised 15 Aug 2003.
  15. Hulusi Inanoglu & Mahmoud A. El-Gamal, 2005. "Inefficiency and heterogeneity in Turkish banking: 1990-2000," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(5), pages 641-664.
  16. Ilham Haouas & Mahmoud Yagoubi & Almas Heshmati, 2003. "Labour-Use Efficiency in the Tunisian's Manufacturing Industries: A Flexible Adjustment Model," Documents de travail 79, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
  17. Matthias Walter, 2011. "Some Determinants of Cost Efficiency in German Public Transport," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 45(1), pages 1-20, January.
  18. Dhawan, Rajeev & Jochumzen, Peter, 1999. "Stochastic Frontier Production Function With Errors-In-Variables," Working Papers 1999:007, Lund University, Department of Economics.

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