Dieter Gstach () (Department of Economics, Vienna University of Economics & B.A.)
Abstract
This paper presents a statistical framework for estimating output-specific efficiencies for the 2-output case based upon a DEA frontier estimate. The key to the approach is the concept of target output-mix. Being usually unobserved, target output-mixes of firms are modelled as missing data. Using this concept the relevant data generating process can be formulated. The resulting likelihood function is analytically intractable, so a data augmented Bayesian approach is proposed for estimation purposes. This technique is adapted to the present purpose. Some implementation issues are discussed leading to an empirical Bayes setup with data informed priors. A prove of scale invariance is provided.
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Publisher Info
Paper provided by Vienna University of Economics and B.A., Department of Economics in its series Department of Economics Working Papers with number
wuwp083.
Find related papers by JEL classification: D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Bayesian Analysis C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Statistical Simulation Methods
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