Hyperbolic Efficiency and Parametric Distance Functions: With Application to Spanish Savings Banks
AbstractDistance functions are gaining relevance as alternative representations of production technologies, with growing numbers of empirical applications being made in the productivity and efficiency field. Distance functions were initially defined on the input or output production possibility sets by Shephard (1953, 1970) and extended to a graph representation of the technology by Färe, Grosskopf and Lovell (1985) through their graph hyperbolic distance function. Since then, different techniques such as non parametric-DEA and parametric-SFA have been used to calculate these distance functions. However, in the latter case we know of no study in which the restriction to input or output orientation has been relaxed. What we propose is to overcome such restrictiveness on dimensionality by defining and estimating a parametric hyperbolic distance function which simultaneously allows for the maximum equiproportionate expansion of outputs and reduction of inputs. In particular, we introduce a translog hyperbolic specification that complies with the conventional properties that the hyperbolic distance function satisfies. Finally, to illustrate its applicability in efficiency analysis we implement it using a data set of Spanish savings banks. Copyright Springer Science+Business Media, Inc. 2005
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Springer in its journal Journal of Productivity Analysis.
Volume (Year): 24 (2005)
Issue (Month): 1 (09)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100296
production frontiers; parametric distance functions; hyperbolic efficiency; banking efficiency;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Alessandro Manello, 2011. "Environment and economic efficiency: an analysis of some polluting Italian industries," CERIS Working Paper 201103, Institute for Economic Research on Firms and Growth - Moncalieri (TO).
- Chris (Hristos) Doucouliagos & Malcolm Abbott, 2007.
"Competition and Efficiency: Overseas students and technical efficiency in Australian and New Zealand Universities,"
2007_09, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
- Malcolm Abbott & Chris Doucouliagos, 2009. "Competition and efficiency: overseas students and technical efficiency in Australian and New Zealand universities," Education Economics, Taylor & Francis Journals, vol. 17(1), pages 31-57.
- Kumbhakar, Subal C., 2013. "Specification and estimation of multiple output technologies: A primal approach," European Journal of Operational Research, Elsevier, vol. 231(2), pages 465-473.
- Yang, Mian & Yang, Fu-Xia & Chen, Xing-Peng, 2011. "Effects of substituting energy with capital on China's aggregated energy and environmental efficiency," Energy Policy, Elsevier, vol. 39(10), pages 6065-6072, October.
- Daehoon Nahm & Ha Vu, 2013. "Measuring scale efficiency from a parametric hyperbolic distance function," Journal of Productivity Analysis, Springer, vol. 39(1), pages 83-88, February.
- Balcombe, Kelvin George & Doucouliagos, Hristos & Fraser, Iain, 2007.
"Input usage, output mix and industry deregulation: an analysis of the Australian dairy manufacturing industry,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 51(2), June.
- Kevin Balcombe & Hristos Doucouliagos & Iain Fraseer, 2006. "Input Usage, Ouput Mix and Industry Deregulation: An Analysis of the Australian Dairy Manufacturing Industry," Economics Series 2006_27, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
- Mehdiloozad, Mahmood & Sahoo, Biresh K. & Roshdi, Israfil, 2014. "A generalized multiplicative directional distance function for efficiency measurement in DEA," European Journal of Operational Research, Elsevier, vol. 232(3), pages 679-688.
- Cuesta, Rafael A. & Lovell, C.A. Knox & Zofío, José L., 2009.
"Environmental efficiency measurement with translog distance functions: A parametric approach,"
Elsevier, vol. 68(8-9), pages 2232-2242, June.
- Cuesta, Rafael A. & Knox, C.A. & Zofío, José Luis, 2007. "Environmental Efficiency Measurement with Translog Distance Functions: A Parametric Approach," Working Papers in Economic Theory 2007/02, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.