IDEAS home Printed from
   My bibliography  Save this article

Labour-Use Efficiency in Swedish Social Insurance Offices


  • Kumbhakar, Subal C
  • Hjalmarsson, Lennart


This paper considers the estimation of frontier production functions in panel data models. It proposes a multi-stage method to obtain estimates of (1) the parameters of a flexible input requirement function and (2) technical inefficiency decomposed into time-invariant (firm-specific), time-varying, and the residual components. The proposed method is used to analyze labor-use efficiency of Swedish local social insurance offices on the basis of a large panel of observations during the time period 1974-84. Empirical results show: (1) substantial variations in labor-use efficiency among these offices, with the mean efficiencies declining over time; (2) presence of economies of scale, thereby meaning that most of the offices were of suboptimal size. Copyright 1995 by John Wiley & Sons, Ltd.

Suggested Citation

  • Kumbhakar, Subal C & Hjalmarsson, Lennart, 1995. "Labour-Use Efficiency in Swedish Social Insurance Offices," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(1), pages 33-47, Jan.-Marc.
  • Handle: RePEc:jae:japmet:v:10:y:1995:i:1:p:33-47

    Download full text from publisher

    File URL:
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See for details.

    File URL:
    File Function: Supporting data files and programs
    Download Restriction: no

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item


    This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:
    1. Labour-use efficiency in Swedish social insurance offices (Journal of Applied Econometrics 1995) in ReplicationWiki


    Access and download statistics


    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:jae:japmet:v:10:y:1995:i:1:p:33-47. 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: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.