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Delivery Offices Cost Frontier: A Robust Non Parametric Approach with Exogenous Variables

Author

Listed:
  • Cazals Catherine

    () (Toulouse School of Economics)

  • Dudley Paul

    (Royal Mail Group)

  • Florens Jean-Pierre

    (Toulouse School of Economics)

  • Patel Shital

    (Royal Mail Group)

  • Rodriguez Frank

    (Royal Mail Group)

Abstract

This paper deals with an analysis of the efficiency of delivery post offices from an estimated cost frontier. Our focus is to apply a robust non parametric approach for the cost frontier estimation, called the order-m frontier, based on the concept of "expected minimum cost" and to extend it to take into account some environmental variables. We illustrate our approach using a cross-section data set on delivery offices.

Suggested Citation

  • Cazals Catherine & Dudley Paul & Florens Jean-Pierre & Patel Shital & Rodriguez Frank, 2008. "Delivery Offices Cost Frontier: A Robust Non Parametric Approach with Exogenous Variables," Review of Network Economics, De Gruyter, vol. 7(2), pages 1-15, June.
  • Handle: RePEc:bpj:rneart:v:7:y:2008:i:2:n:7
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    References listed on IDEAS

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    1. Greene, William H., 1980. "Maximum likelihood estimation of econometric frontier functions," Journal of Econometrics, Elsevier, vol. 13(1), pages 27-56, May.
    2. Cinzia Daraio & Léopold Simar, 2005. "Introducing Environmental Variables in Nonparametric Frontier Models: a Probabilistic Approach," Journal of Productivity Analysis, Springer, vol. 24(1), pages 93-121, September.
    3. H. Fried & C. Lovell & S. Schmidt & S. Yaisawarng, 2002. "Accounting for Environmental Effects and Statistical Noise in Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 17(1), pages 157-174, January.
    4. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 1993. "The Measurement of Productive Efficiency: Techniques and Applications," OUP Catalogue, Oxford University Press, number 9780195072181.
    5. 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.
    6. 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.
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    Cited by:

    1. Cordero Ferrera, Jose Manuel & Alonso Morán, Edurne & Nuño Solís, Roberto & Orueta, Juan F. & Souto Arce, Regina, 2013. "Efficiency assessment of primary care providers: A conditional nonparametric approach," MPRA Paper 51926, University Library of Munich, Germany.
    2. De Witte, Kristof & Mika, Kortelainen, 2009. "Blaming the exogenous environment? Conditional efficiency estimation with continuous and discrete exogenous variables," MPRA Paper 14034, University Library of Munich, Germany.
    3. Sofia KOURTESI & Panos FOUSEKIS & Apostolos POLYMEROS, 2012. "Conditional Efficiency Estimation With Environmental Variables: Evidence From Greek Cereal Farms," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 11(1), pages 43-52.
    4. Predrag Ralević & Momčilo Dobrodolac & Dejan Marković, 2016. "Using a nonparametric technique to measure the cost efficiency of postal delivery branches," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 24(3), pages 637-657, September.
    5. Cordero, José Manuel & Alonso-Morán, Edurne & Nuño-Solinis, Roberto & Orueta, Juan F. & Arce, Regina Sauto, 2015. "Efficiency assessment of primary care providers: A conditional nonparametric approach," European Journal of Operational Research, Elsevier, vol. 240(1), pages 235-244.
    6. Tochkov, Kiril, 2015. "The efficiency of postal services in the age of market liberalization and the internet: Evidence from Central and Eastern Europe," Utilities Policy, Elsevier, vol. 36(C), pages 35-42.

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