On Measuring Economic Efficiency
AbstractThis paper considers a system consisting of a production frontier and factor share equations to measure firm-specific technical efficiency and input-specific allocative efficiency simultaneously. In estimating the system as a whole, the joint distribution of all errors in the equations is used. This is more efficient than using the marginal distribution of a function of the errors as one does by estimating either the profit function of the production function alone. The workability of the method is illustrated by applying it to farm-level data from Philippines agriculture. Copyright 1990 by John Wiley & Sons, Ltd.
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Bibliographic InfoArticle provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.
Volume (Year): 5 (1990)
Issue (Month): 1 (January-March)
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