This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Efficiency measurement, multiple-output technologiess and distance functions : with application to European Railways

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Tim Coelli
Sergio Perelman

Additional information is available for the following registered author(s):

Abstract

The single-output production function has long been regarded as one of the principle limitations of the econometric approach to technical efficiency measurement. If one wished to investigate efficiency in a multiple-output industry using econometric methods one would usually either: (a) aggregate outputs into a single index of output (e.g., total revenue or a multilateral Tornqvist output index); or (b) attempt to model the technology using a dual cost function. The first of these methods require that output prices be observable (and reflect revenue maximising behaviour), while the latter approach requires an assumption of cost-minimising behaviour. There are a number of instances, however, when neither of these requirements are met (the public sector contains many examples). In this study we outline the recently developed distance function solution to the multi-output problem. The method is illustrated using data on European railways. Output-orientated, input-orientated and constant returns to scale distance functions are estimated using corrected ordinary least squares. The distance function estimates are also compared with production function estimates involving aggregate output measures. These comparisons indicate that, for the case of European railways, a production function involving a multilateral Tornqvist output index exhibits substantially less aggregation bias relative to a production function that uses total revenue as a measure of aggregate output.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.ulg.ac.be/crepp/CREPP%209605%20Coelli-Perelman.pdf
Our checks indicate that this address may not be valid because: 404 Not Found (http://www.ulg.ac.be/crepp/CREPP%209605%20Coelli-Perelman.pdf [302 Found]--> http://www2.ulg.ac.be/crepp/CREPP%209605%20Coelli-Perelman.pdf). If this is indeed the case, please notify (Mathieu Lefebvre)
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège in its series CREPP Working Papers with number 9605.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: 2000
Date of revision:
Handle: RePEc:rpp:wpaper:9605

Contact details of provider:
Postal: Boulevard du Rectorat, 7, Batiment 31, boite 39, 4000 Liege
Phone: + 32 (0) 4 366 31 08
Fax: + 32 (0) 4 366 31 06
Web page: http://www.ulg.ac.be/crepp/
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Mathieu Lefebvre).

Related research
Keywords:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Caves, Douglas W & Christensen, Laurits R, 1980. "The Relative Efficiency of Public and Private Firms in a Competitive Environment: The Case of Canadian Railroads," Journal of Political Economy, University of Chicago Press, vol. 88(5), pages 958-76, October. [Downloadable!] (restricted)
  2. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Derek D. Headey & D.S. Prasada Rao & Mohammad Alauddin, 2004. "Explaining Agricultural Productivity Levels and Growth: An International Perspective," CEPA Working Papers Series WP022005, School of Economics, University of Queensland, Australia. [Downloadable!]
  2. Hadley, David, 1998. "Estimation Of Shadow Prices Of Undesirable Outputs: An Application To Uk Dairy Farms," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20977, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  3. Fulginiti, Lilyan E., 2001. "Griliches' K-Shift And Competitiveness: Commodity Progress In Us Agriculture," 2001 Annual meeting, August 5-8, Chicago, IL 20700, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  4. Richard Nehring & Jorge Fernandez-Cornejo & David Banker, 2005. "Off-farm labour and the structure of US agriculture: the case of corn/soybean farms," Applied Economics, Taylor and Francis Journals, vol. 37(6), pages 633-649, April. [Downloadable!] (restricted)
  5. Tim J. Coelli & Chris O’Donnell, 2003. "A Bayesian Approach To Imposing Curvature On Distance Functions," CEPA Working Papers Series WP032003, School of Economics, University of Queensland, Australia. [Downloadable!]
    Other versions:
  6. Emvalomatis, Grigorios & Oude Lansink, Alfons & Stefanou, Spiro E., 2008. "An Examination of the Relationship Between Subsidies on Production and Technical Efficiency in Agriculture: The Case of Cotton Producers in Greece," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6673, European Association of Agricultural Economists. [Downloadable!]
  7. Lambarraa, Fatima & Stefanou, Spiro & Serra, Teresa & Gil, Jose M., 2008. "The impact of the CAP reforms on the efficiency of the COP sector in Spain," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44408, European Association of Agricultural Economists. [Downloadable!]
  8. Luis Orea Sánchez & Rafael Álvarez Cuesta, 1998. "- Firm-Specific Temporal Variation In Technical Efficency Results Of: A Stochastic Output Distance Function," Working Papers. Serie EC 1998-27, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
  9. Alessandra Ferrari, 2004. "NHS reforms and efficiency of hospital services: a stochastic distance function approach," Economics & Management Discussion Papers em-dp2004-19, Henley Business School, Reading University. [Downloadable!]
  10. Sauer, Johannes, 2008. "Quota Deregulation and Organic versus Conventional Milk – A Bayesian Distance Function Approach," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6425, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
    Other versions:
  11. Phoebe Koundouri & Trond Bjorndal & Sean Pascoe, 2004. "Output Substitution in Multi-Species Trawl Fisheries: Implications for Quota Setting," Working Papers 2004.30, Fondazione Eni Enrico Mattei. [Downloadable!]
  12. Alene, Arega D. & Zeller, Manfred, 2005. "Technology adoption and farmer efficiency in multiple crops production in eastern Ethiopia: A comparison of parametric and non-parametric distance functions," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 6(1), January. [Downloadable!]
  13. Estrin, Andrew J., 1999. "The Impacts Of Self-Sufficiency Policies And Fiscal Decentralization On The Efficiency Of Grain Production In China," 1999 Annual meeting, August 8-11, Nashville, TN 21610, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  14. James Kirkley & Dale Squires, 1999. "Capacity and Capacity Utilization in Fishing Industries," University of California at San Diego, Economics Working Paper Series 1999-16, Department of Economics, UC San Diego. [Downloadable!]
  15. Alessandra Ferrari, 2006. "The internal market and hospital efficiency: a stochastic distance function approach," Applied Economics, Taylor and Francis Journals, vol. 38(18), pages 2121-2130, October. [Downloadable!] (restricted)
  16. John L. Whiteman, 1999. "The Measurement Of Efficiency Where There Are Multiple Outputs," Centre of Policy Studies/IMPACT Centre Working Papers g-134, Monash University, Centre of Policy Studies/IMPACT Centre. [Downloadable!]
  17. Jamasb, T. & Pollitt, M., 2001. "International Benchmarking and Yardstick Regulation: An Application to European Electricity Utilities," Cambridge Working Papers in Economics 0115, Faculty of Economics, University of Cambridge. [Downloadable!]
Statistics
Access and download statistics

Did you know? All full texts are decentralized with the publishers, none reside on this server, thus making it possible to offer this service for free to all parties.

This page was last updated on 2009-11-14.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.