IDEAS home Printed from https://ideas.repec.org/a/ags/stataj/229437.html
   My bibliography  Save this article

Partial frontier efficiency analysis

Author

Listed:
  • Tauchmann, Harald

Abstract

Despite their frequent use in applied work, nonparametric approaches to efficiency analysis—namely, data envelopment analysis and free disposal hull—have bad reputations among econometricians. This is mainly because data envelopment analysis and free disposal hull represent deterministic approaches that are highly sensitive to outliers and measurement errors. However, so-called partial frontier approaches have recently been developed, namely, order-m and order-α. These approaches generalize free disposal hull by allowing for superefficient observations to be located beyond the estimated production-possibility frontier. Although these methods are also purely nonparametric, the sensitivity to outliers is substantially reduced by partial frontier approaches enveloping just a subsample of observations. In this article, I introduce the new Stata commands orderm and orderalpha, which implement order-m, order-α, and free disposal hull efficiency analysis in Stata. The commands allow for several options, such as statistical inference based on subsampling bootstrapping.

Suggested Citation

  • Tauchmann, Harald, 2012. "Partial frontier efficiency analysis," Stata Journal, StataCorp LP, vol. 12(3), pages 1-20.
  • Handle: RePEc:ags:stataj:229437
    as

    Download full text from publisher

    File URL: http://ageconsearch.umn.edu/record/229437/files/sjart_st0270.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Marques, Rui Cunha & De Witte, Kristof, 2011. "Is big better? On scale and scope economies in the Portuguese water sector," Economic Modelling, Elsevier, vol. 28(3), pages 1009-1016, May.
    2. Aragon, Y. & Daouia, A. & Thomas-Agnan, C., 2005. "Nonparametric Frontier Estimation: A Conditional Quantile-Based Approach," Econometric Theory, Cambridge University Press, vol. 21(02), pages 358-389, April.
    3. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    4. repec:pal:jorsoc:v:54:y:2003:i:1:d:10.1057_palgrave.jors.2601483 is not listed on IDEAS
    5. Yong-bae Ji & Choonjoo Lee, 2010. "Data envelopment analysis," Stata Journal, StataCorp LP, vol. 10(2), pages 267-280, June.
    6. Cazals, Catherine & Florens, Jean-Pierre & Simar, Leopold, 2002. "Nonparametric frontier estimation: a robust approach," Journal of Econometrics, Elsevier, vol. 106(1), pages 1-25, January.
    7. repec:ags:stataj:152313 is not listed on IDEAS
    8. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    9. Anatoly Pilyavsky & Matthias Staat, 2008. "Efficiency and productivity change in Ukrainian health care," Journal of Productivity Analysis, Springer, vol. 29(2), pages 143-154, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:kap:hcarem:v:20:y:2017:i:3:d:10.1007_s10729-016-9359-1 is not listed on IDEAS
    2. repec:eee:ecanpo:v:61:y:2019:i:c:p:55-63 is not listed on IDEAS
    3. repec:spr:annopr:v:244:y:2016:i:2:d:10.1007_s10479-016-2160-1 is not listed on IDEAS
    4. repec:taf:applec:v:50:y:2018:i:48:p:5164-5188 is not listed on IDEAS
    5. Sandulli, Francesco D. & Baker, Paul M.A. & López-Sánchez, José I., 2013. "Can small and medium enterprises benefit from skill-biased technological change?," Journal of Business Research, Elsevier, vol. 66(10), pages 1976-1982.
    6. Matthias Gnewuch & Klaus Wohlrabe, 2018. "Super-efficiency of education institutions: an application to economics departments," Education Economics, Taylor & Francis Journals, vol. 26(6), pages 610-623, November.
    7. Diana Fernández Moreno & Dairo Estrada, 2013. "Colombian bank efficiency and the role of market structure," Temas de Estabilidad Financiera 076, Banco de la Republica de Colombia.
    8. Maria EL KHDARI & Babacar SARR, 2018. "Decentralization, spending efficiency and pro-poor outcomes in Morocco," Working Papers 201805, CERDI.
    9. Badunenko, Oleg & Tauchmann, Harald, 2018. "Simar and Wilson two-stage efficiency analysis for Stata," FAU Discussion Papers in Economics 08/2018, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    10. repec:ebl:ecbull:eb-17-00556 is not listed on IDEAS
    11. Tankari, Mahamadou Roufahi, 2014. "Quelles zones cibler pour accroître l’efficacité agricole en Ouganda?," MPRA Paper 53396, University Library of Munich, Germany.
    12. Gosse A.G. Alserda & Jacob A. Bikker & Fieke S.G. Van Der Lecq, 2018. "X-efficiency and economies of scale in pension fund administration and investment," Applied Economics, Taylor & Francis Journals, vol. 50(48), pages 5164-5188, October.
    13. Jiri Schwarz & Martin Stepanek, 2016. "Patents: A Means to Innovation or Strategic Ends?," Working Papers IES 2016/08, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Apr 2016.
    14. repec:spr:envpol:v:21:y:2019:i:2:d:10.1007_s10018-018-0232-y is not listed on IDEAS
    15. Klaus Wohlrabe & Elisabeth Friedrich, 2017. "The efficiency of economics departments reconsidered," Economics Bulletin, AccessEcon, vol. 37(3), pages 1602-1611.
    16. repec:idb:idbbks:9152 is not listed on IDEAS

    More about this item

    Keywords

    Research Methods/ Statistical Methods;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:stataj:229437. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://www.stata-journal.com/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.