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A Consistent Approach to Cost Efficiency Measurement

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Author Info

  • Bitros, G.C.
  • Tsionas, E.G.

Abstract

Consistent specifications of the allocative inefficiency function in cost plus input share equations systems may be difficult, if not impossible, to find because most plausible ones violate certain reasonable a priori conditions. Moreover, the models to which they lead give rise to highly non-linear likelihood functions that are very hard to estimate.

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Bibliographic Info

Paper provided by Athens University of Economics and Business, Department of International and European Economic Studies in its series Athens University of Economics and Business with number 124.

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Length: 19 pages
Date of creation: 2001
Date of revision:
Handle: RePEc:fth:athebu:124

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Postal: Athens University of Economics and Business, Department of International and European Economic Studies. Parission 76, Athens Greece 10434
Phone: +30 1 8203250
Fax: +301 8228419
Web page: http://www.aueb.gr/
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Related research

Keywords: COSTS ; MODELS ; LABOUR;

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Cited by:
  1. Johannes Sauer & Klaus Frohberg & Henrich Hockmann, 2006. "Stochastic efficiency measurement: The curse of theoretical consistency," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 139-166, May.

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