Estimating the technical efficiency of a firm by eliminating the effects of exogenous factors
The paper discusses the problem of estimating technical efficiency in a way objective from the standpoint of firms. Such estimation is possible if the effect of factors uncontrollable by the firm is eliminated. To carry out the corresponding analysis a system of factors of technical efficiency and possibilities for solving this system are presented. An approach based on a deterministic model of the effect of factors noncontrollable by the firm is recommended. The application of this technique is possible in case of limited information when only time-series data can be used. In connection with this also the way technical efficiency is to be estimated is referred to. For practical application of this approach an optimal programming problem is formulated. A numerical example is given.
Volume (Year): 3 (1990)
Issue (Month): 2 (Autumn)
|Contact details of provider:|| Web page: http://www.taloustieteellinenyhdistys.fi|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Danilin, V I, et al, 1985. "Measuring Enterprise Efficiency in the Soviet Union: A Stochastic Frontier Analysis," Economica, London School of Economics and Political Science, vol. 52(206), pages 225-33, May.
- Schmidt, Peter & Knox Lovell, C. A., 1979. "Estimating technical and allocative inefficiency relative to stochastic production and cost frontiers," Journal of Econometrics, Elsevier, vol. 9(3), pages 343-366, February.
- Banker, Rajiv D & Maindiratta, Ajay, 1988. "Nonparametric Analysis of Technical and Allocative Efficiencies in Production," Econometrica, Econometric Society, vol. 56(6), pages 1315-32, November.
- 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.
When requesting a correction, please mention this item's handle: RePEc:fep:journl:v:3:y:1990:i:2:p:146-155. 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: (Editorial Secretary)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.