Non-parametric efficiency, progress and regress measures for panel data: Methodological aspects
This purely methodological paper deals with the role of time in non-parametric efficiency analysis. Using both FDH and DEA technologies, it first shows how each observation in a panel can be characterized in efficiency terms vis-a-vis three different kinds of frontiers: (i) "contemporaneous", (ii) "sequential", and (iii) "intertemporal". These are then compared with window analysis. Next, frontier shifts "outward" and "inward", interpreted as progress or regress are considered for the two kinds of technologies, and computational methods are described in detail for evaluating such shifts in either case. These are also contrasted with what is measured by the "Malmquist" productivity index. Finally, an alternative way of identifying progress and regress, independent of the frontier notion and referring instead to some "benchmark" notion, is extended here to panel data.
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- R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
- Tulkens, H. & Vanden Eeckaut, Ph., 1991. "Non-frontier measures of efficiency, progress and regress," CORE Discussion Papers 1991055, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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- Grosskopf, S, 1986. "The Role of the Reference Technology in Measuring Productive Efficiency," Economic Journal, Royal Economic Society, vol. 96(382), pages 499-513, June.
- 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.
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