IDEAS home Printed from https://ideas.repec.org/p/ags/aaea02/19765.html
   My bibliography  Save this paper

Robustness Of Non-Parametric Measurement Of Efficiency And Risk Aversion

Author

Listed:
  • Settlage, Daniel M.
  • Preckel, Paul V.

Abstract

This paper examines the performance of a risk-adjusted non-parametric approach to measuring efficiency and risk aversion. Prior work is extended to the case where agent behavior is motivated by expected utility maximization. Results indicate the approach significantly outperforms traditional efficiency measurement methods when applied to risk averse agents.

Suggested Citation

  • Settlage, Daniel M. & Preckel, Paul V., 2002. "Robustness Of Non-Parametric Measurement Of Efficiency And Risk Aversion," 2002 Annual meeting, July 28-31, Long Beach, CA 19765, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea02:19765
    DOI: 10.22004/ag.econ.19765
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/19765/files/sp02se04.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.19765?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Forsund, Finn R. & Lovell, C. A. Knox & Schmidt, Peter, 1980. "A survey of frontier production functions and of their relationship to efficiency measurement," Journal of Econometrics, Elsevier, vol. 13(1), pages 5-25, May.
    2. Gong, Byeong-Ho & Sickles, Robin C., 1992. "Finite sample evidence on the performance of stochastic frontiers and data envelopment analysis using panel data," Journal of Econometrics, Elsevier, vol. 51(1-2), pages 259-284.
    3. Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 1-27, December.
    4. Atanu Saha, 1993. "Expo-Power Utility: A ‘Flexible’ Form for Absolute and Relative Risk Aversion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(4), pages 905-913.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mai, Nhat Chi, 2015. "Efficiency of the banking system in Vietnam under financial liberalization," OSF Preprints qsf6d, Center for Open Science.
    2. Henry, Michael & Kneller, Richard & Milner, Chris, 2009. "Trade, technology transfer and national efficiency in developing countries," European Economic Review, Elsevier, vol. 53(2), pages 237-254, February.
    3. Settlage, Daniel M. & Dixon, Bruce L. & Thomsen, Michael R., 2000. "A Comparison Of Various Frontier Estimation Methods Under Differing Data Generation Assumptions," Staff Papers 15773, University of Arkansas, Department of Agricultural Economics and Agribusiness.
    4. De Borger, Bruno & Kerstens, Kristiaan, 1996. "Cost efficiency of Belgian local governments: A comparative analysis of FDH, DEA, and econometric approaches," Regional Science and Urban Economics, Elsevier, vol. 26(2), pages 145-170, April.
    5. Maria Francesca Cracolici & Peter Nijkamp & Miranda Cuffaro, 2007. "Efficiency and Productivity of Italian Tourist Destinations: A Quantitative Estimation Based on Data Envelopment Analysis and the Malmquist Method," Springer Books, in: Álvaro Matias & Peter Nijkamp & Paulo Neto (ed.), Advances in Modern Tourism Research, chapter 0, pages 325-343, Springer.
    6. Konstantinos Giannakas & K. Tran & Vangelis Tzouvelekas, 1999. "On the Choice of Functional Form in Stochastic Frontiers Models: A Box-Cox Approach," Working Papers 9915, University of Crete, Department of Economics.
    7. Maria Francesca Cracolici & Peter Nijkamp & Piet Rietveld, 2008. "Assessment of Tourism Competitiveness by Analysing Destination Efficiency," Tourism Economics, , vol. 14(2), pages 325-342, June.
    8. Chand, Narendra & Kerr, Geoffrey N. & Bigsby, Hugh R., "undated". "Why some community forests are performing better than others: a case of forest user groups in Nepal," 2010 Conference, August 26-27, 2010, Nelson, New Zealand 96827, New Zealand Agricultural and Resource Economics Society.
    9. Khem Sharma & Pingsun Leung & Halina Zaleski, 1997. "Productive Efficiency of the Swine Industry in Hawaii: Stochastic Frontier vs. Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 8(4), pages 447-459, November.
    10. Gonzalez, M. & Trujillo, L., 2007. "Efficiency measurement in the port industry: a survey of the empirical evidence," Working Papers 07/08, Department of Economics, City University London.
    11. Jiancheng Guan & Kairui Zuo, 2014. "A cross-country comparison of innovation efficiency," Scientometrics, Springer;Akadémiai Kiadó, vol. 100(2), pages 541-575, August.
    12. Sandunika Jayakody & Sajitha Dishanka, 2020. "An Estimation of Technical Efficiency of Tea Smallholdings in Ratnapura District of Sri Lanka," Journal of Social and Development Sciences, AMH International, vol. 10(4), pages 1-11.
    13. Bravo-Ureta, Boris E. & Jara-Rojas, Roberto & Lachaud, Michee A. & Moreira L., Victor H. & Scheierling, Susanne M., 2015. "Water and Farm Efficiency: Insights from the Frontier Literature," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 206076, Agricultural and Applied Economics Association.
    14. Abdul Wadud, 2013. "Impact of Microcredit on Agricultural Farm Performance and Food Security in Bangladesh," Working Papers 14, Institute of Microfinance (InM).
    15. Kevin Cullinane & Dong-Wook Song, 2003. "A stochastic frontier model of the productive efficiency of Korean container terminals," Applied Economics, Taylor & Francis Journals, vol. 35(3), pages 251-267.
    16. Chirwa Ephraim W., 2007. "Sources of Technical Efficiency among Smallholder Maize Farmers in Southern Malawi," Working Papers 172, African Economic Research Consortium, Research Department.
    17. Trujillo, Lourdes & González, María Manuela & Jiménez, Juan Luis, 2013. "An overview on the reform process of African ports," Utilities Policy, Elsevier, vol. 25(C), pages 12-22.
    18. Chebil, Ali & Frija, Iheb & Bahri, Walid, 2014. "Irrigation water efficiency in wheat production in Chbika (Tunisia):Parametric versus Nonparametric Comparisons," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 15(1), pages 1-14.
    19. Suyanto, & Salim, Ruhul & Bloch, Harry, 2014. "Which firms benefit from foreign direct investment? Empirical evidence from Indonesian manufacturing," Journal of Asian Economics, Elsevier, vol. 33(C), pages 16-29.
    20. Cullinane, Kevin & Song, Dong-Wook, 2006. "Estimating the Relative Efficiency of European Container Ports: A Stochastic Frontier Analysis," Research in Transportation Economics, Elsevier, vol. 16(1), pages 85-115, January.

    More about this item

    Keywords

    Risk and Uncertainty;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea02:19765. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.