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A Multiple Output Stochastic Ray Frontier Production Model

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  • Löthgren, Mickael

    ()
    (Department of Economic Statistics)

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    Abstract

    This paper proposes an approach to specify and estimate multiple input, multiple output production frontiers and technical efficiency using a stochastic ray frontier production model A possible model extension is to incorporate a technical efficiency effects model to allow estimation of the effects of various explanatory variables on technical efficiency. An empirical application using Swedish health care data reveals a significant positive effect on technical efficiency of an "internal market" reform while the effect on the production frontier is negative. Technical change is found to be positive while technical efficiency has decreased over time.

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    Bibliographic Info

    Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 158.

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    Length: 15 pages
    Date of creation: Feb 1997
    Date of revision:
    Publication status: Published in Applied Economics, 2000, pages 1533-1540.
    Handle: RePEc:hhs:hastef:0158

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    Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
    Phone: +46-(0)8-736 90 00
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    Web page: http://www.hhs.se/
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    Related research

    Keywords: Composed error model; distance function; panel data; stochastic ray frontier model; technical change; technical efficiency;

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    Cited by:
    1. John L. Whiteman, 1999. "The Measurement Of Efficiency Where There Are Multiple Outputs," Centre of Policy Studies/IMPACT Centre Working Papers g-134, Victoria University, Centre of Policy Studies/IMPACT Centre.

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