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Regional technical efficiency: a stochastic frontier approach

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  • Mercedes Gumbau Albert

Abstract

The aim of this paper is to analyse the (in)efficiency of the Spanish regions over the period 1986-91, using a stochastic frontier approach. Different distributional assumptions are used to estimate each region's (in)efficiency as well as the influence of the inputs on the productivity gains: half-normal, truncated-normal and exponential models. The results show that, on average, the inefficiency varies between the 15% and 19%.

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  • Mercedes Gumbau Albert, 1998. "Regional technical efficiency: a stochastic frontier approach," Applied Economics Letters, Taylor & Francis Journals, vol. 5(11), pages 723-726.
    • Handle: RePEc:taf:apeclt:v:5:y:1998:i:11:p:723-726
    DOI: 10.1080/135048598354212
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    1. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 1993. "The Measurement of Productive Efficiency: Techniques and Applications," OUP Catalogue, Oxford University Press, number 9780195072181.
    2. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-444, June.
    3. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
    4. Stevenson, Rodney E., 1980. "Likelihood functions for generalized stochastic frontier estimation," Journal of Econometrics, Elsevier, vol. 13(1), pages 57-66, May.
    5. Cornwell, Christopher & Schmidt, Peter & Sickles, Robin C., 1990. "Production frontiers with cross-sectional and time-series variation in efficiency levels," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 185-200.
    6. 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.
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    Cited by:

    1. Ligia Melo B., 2005. "Impacto de la Descentralización Fiscal sobre la Educación Pública Colombiana," Borradores de Economia 350, Banco de la Republica de Colombia.
    2. Manevska-Tasevska, Gordana & Hansson, Helena & Asmild, Mette & Surry, Yves, 2018. "Assessing the regional efficiency of Swedish agriculture under the CAP ‒ a multidirectional efficiency approach," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 271971, European Association of Agricultural Economists.
    3. Concetta Castiglione, 2012. "Technical efficiency and ICT investment in Italian manufacturing firms," Applied Economics, Taylor & Francis Journals, vol. 44(14), pages 1749-1763, May.
    4. repec:bdr:ensayo:v::y:2005:i:49:p:88-132 is not listed on IDEAS
    5. Ligia Melo & Néstor Espinosa, 2005. "Ineficiencia en la distribución de energía eléctrica: una aplicación de las funciones de distancia estocástica," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 23(49), pages 88-132, December.
    6. Nadide YiÄŸiteli, 2023. "Production Losses Due to Technical Inefficiency: A Panel Data Analysis on the Case of BRICS-T Countries," EKOIST Journal of Econometrics and Statistics, Istanbul University, Faculty of Economics, vol. 0(38), pages 53-73, June.
    7. Álvarez, Inmaculada C. & Gude, Alberto & Orea, Luis, 2019. "Effects of inter-industry and spatial spillovers on regional productivity: Evidence from Spanish panel data," Efficiency Series Papers 2019/01, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    8. Heru Margono & Subhash Sharma & Kevin Sylwester & Usama Al-Qalawi, 2009. "Technical efficiency and productivity analysis in Indonesian provincial economies," Applied Economics, Taylor & Francis Journals, vol. 43(6), pages 663-672.
    9. Marco FIORAMANTI, 2010. "Estimation And Decomposition Of Total Factor Productivity Growth In The Eu Manufacturing Sector: A Long Run Perspective," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 5(3(13)/Fal), pages 217-230.
    10. Danish Ahmed SIDDIQUI & Qazi Masood AHMED, 2019. "Exploring the role of institutions in cross country Malmquist productivity analysis: A two-stage double bootstrap DEA approach," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(621), W), pages 241-264, Winter.
    11. Becerra, Ligia Melo, 2004. "Intergovernmental fiscal relations : the Colombian case," Economics PhD Theses 0304, Department of Economics, University of Sussex Business School.
    12. Lamees Al-Durgham & Mohammad Adeinat, 2020. "Efficiency of Listed Manufacturing Firms in Jordan: A Stochastic Frontier Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 10(6), pages 5-9.
    13. Ligia Melo Becerra, 2005. "Impacto De La Descentralización Fiscal Sobre La Educación Pública Colombiana," Borradores de Economia 2802, Banco de la Republica.
    14. repec:agr:journl:v:4(621):y:2019:i:4(621):p:241-264 is not listed on IDEAS
    15. Sharma, Subhash C. & Sylwester, Kevin & Margono, Heru, 2007. "Decomposition of total factor productivity growth in U.S. states," The Quarterly Review of Economics and Finance, Elsevier, vol. 47(2), pages 215-241, May.
    16. Ligia Melo B. & Néstor Espinosa, 2004. "Ineficiencia En La Distribución De Energía Eléctrica: Una Aplicación De Las Funciones De Distancia Estocástica," Borradores de Economia 2843, Banco de la Republica.
    17. Marco Fioramanti, 2009. "Estimation and Decomposition of Total Factor Productivity Growth in the EU Manufacturing Sector: a Stochastic Frontier Approach," ISAE Working Papers 114, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).

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