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Small Sample Performance of Two Approaches to Technical Efficiency Estimation with Multiple Outputs

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  • Dieter Gstach

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    (Department of Economics, Vienna University of Economics & B.A.)

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    Abstract

    This paper provides simulation evidence concerning some statistical properties of two different approaches to technical efficiency estimation for multiple-output production under noisy conditions: The Ray Frontier Approach (RFA) from Löthgren (1997) DEA+ proposed in Gstach (1996). RFA, unlike earlier approaches in the realm of stochastic frontier analysis, is capable of efficiency estimation in the case of multiple outputs as well and lends itself for comparison with DEA+. Several settings with varying sample sizes, noise to signal ratios and mean inefficiencies are investigated.

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    Bibliographic Info

    Paper provided by Vienna University of Economics, Department of Economics in its series Department of Economics Working Papers with number wuwp058.

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    Date of creation: Jun 1998
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    Handle: RePEc:wiw:wiwwuw:wuwp058

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    Web page: http://www.wu.ac.at/economics/en

    Related research

    Keywords: Stochastic DEA; Ray Frontier Approach; Multiple Outputs; Monte-Carlo Analysis; Frontier Estimation; Efficiency Estimation;

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    Cited by:
    1. Aleksandra Riedl & Silvia Rocha-Akis, 2007. "Testing the tax competition theory: How elastic are national tax bases in western Europe?," Department of Economics Working Papers wuwp112, Vienna University of Economics, Department of Economics.

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