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Technical Efficiency in Noisy Multi-Output Settings

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Author Info
Dieter Gstach () (Department of Economics, Vienna University of Economics & B.A.)
Abstract

This paper surveys four distinct approaches to frontier estimation of multi-output (and simultaneously multi-input) technologies, when nothing but noisy quantity data are available. Parametrized distributions for inefficiency and noise are necessary for identification of inefficiency, when only cross-sectional data are available. In other respects suitable techniques may differ widely, as is shown. A final technique presented rigorously exploits the possibilities from panel-data by dropping parametrization of distributions as well as functional forms. It is illustrated how this last technique can be coupled with the others to provide a state-of-the-art estimation procedure for this setting.

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Paper provided by Vienna University of Economics and B.A., Department of Economics in its series Department of Economics Working Papers with number wuwp059.

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Date of creation: Aug 1998
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Handle: RePEc:wiw:wiwwuw:wuwp059

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Related research
Keywords: Technical Efficiency; Stochastic Frontier; Stochastic DEA; Multi-Output; Non-Parametric Estimation;

Find related papers by JEL classification:
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods

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  7. Imed Limam, . "Measuring Technical Efficiency of Kuwait Banks," API-Working Paper Series 0101, Arab Planning Institute - Kuwait, Information Center. [Downloadable!]
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