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Decomposing regional efficiency

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  • Schaffer, Axel
  • Simar, Léopold
  • Rauland, Jan

Abstract

Applying an outlier robust extension of the data envelopment analysis (DEA) followed by a geoadditive regression analysis, this study identifies and decomposes the efficiency of 439 German regions in using infrastructure and human capital. The findings show that the regions' efficiency is driven by a spatial and a non-spatial, arguably structural factor. As a consequence, concrete regional funding schemes, shaped by best practice results, might not be appropriate for all regions. Instead, a more differentiated funding scheme that accounts for both spatial and structural factors seems more promising. --

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Bibliographic Info

Paper provided by Karlsruhe Institute of Technology (KIT), Department of Economics and Business Engineering in its series Working Paper Series in Economics with number 10.

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Date of creation: 2010
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Handle: RePEc:zbw:kitwps:10

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Web page: http://www.wiwi.kit.edu/
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Keywords: outlier robust DEA; regional efficiency; geoadditive regression;

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Cited by:
  1. Xia, X.H. & Chen, Y.B. & Li, J.S. & Tasawar, H. & Alsaedi, A. & Chen, G.Q., 2014. "Energy regulation in China: Objective selection, potential assessment and responsibility sharing by partial frontier analysis," Energy Policy, Elsevier, Elsevier, vol. 66(C), pages 292-302.
  2. Schaffer, Axel, 2011. "Appropriate policy measures to attract private capital in consideration of regional efficiency in using infrastructure and human capital," Working Paper Series in Economics 31, Karlsruhe Institute of Technology (KIT), Department of Economics and Business Engineering.

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