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Nonparametric Technical Efficiency with N Firms and M Inputs: A Simulation

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  • Tauer, Loren W.
  • Hanchar, John J.

Abstract

Simulation of nonparametric efficiency shows that even when the number of firms is large, defining ten or more inputs results in most firms being efficient. Comparison of empirical with simulated results suggests that the dimension of the problem rather than actual efficiencies has the greater effect for some empirical results.

Suggested Citation

  • Tauer, Loren W. & Hanchar, John J., 1993. "Nonparametric Technical Efficiency with N Firms and M Inputs: A Simulation," Staff Papers 121333, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudasp:121333
    DOI: 10.22004/ag.econ.121333
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    References listed on IDEAS

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    7. P. Byrnes & R. Färe & S. Grosskopf, 1984. "Measuring Productive Efficiency: An Application to Illinois Strip Mines," Management Science, INFORMS, vol. 30(6), pages 671-681, June.
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    Cited by:

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    2. Rolf Färe & Gerald Whittaker, 1995. "An Intermediate Input Model Of Dairy Production Using Complex Survey Data," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(2), pages 201-213, May.

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