Nonparametric Analysis of Technology and Productivity under Non-Convexity
This paper investigates the nonparametric analysis of technology under non-convexity. The analysis extends two approaches now commonly used in efficiency and productivity analysis: Data Envelopment Analysis (DEA) where convexity is imposed; and Free Disposal Hull (FDH) models. We argue that, while the FDH model allows for non-convexity, its representation of non-convexity is too extreme. We propose a new nonparametric model that relies on a neighborhood-based technology assessment which allows for less extreme forms of non-convexity. The distinctive feature of our approach is that it allows for non-convexity to arise in any part of the feasible set. We show how it can be implemented empirically by solving simple linear programming problems. And we illustrate the usefulness of the approach in an empirical application to the analysis of technical and scale efficiency on Korean farms.
|Date of creation:||2013|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
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.:
- Kerstens, Kristiaan & Vanden Eeckaut, Philippe, 1999.
"Estimating returns to scale using non-parametric deterministic technologies: A new method based on goodness-of-fit,"
European Journal of Operational Research,
Elsevier, vol. 113(1), pages 206-214, February.
- KERSTENS, Kristiaan & VANDEN EECKAUT, Philippe, 1997. "Estimating returns to scale using nonparametric deterministic technologies : a new method based on goodness-of-fit," CORE Discussion Papers 1997013, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Peter Bogetoft & Joseph M. Tama & Jørgen Tind, 2000. "Convex Input and Output Projections of Nonconvex Production Possibility Sets," Management Science, INFORMS, vol. 46(6), pages 858-869, June.
- repec:cor:louvrp:-1828 is not listed on IDEAS
- Léopold Simar & Valentin Zelenyuk, 2011. "Stochastic FDH/DEA estimators for frontier analysis," Journal of Productivity Analysis, Springer, vol. 36(1), pages 1-20, August.
- Leopold Simar & Valentin Zelenyuk, 2008. "Stochastic FDH/DEA estimators for Frontier Analysis," Discussion Papers 8, Kyiv School of Economics.
- Walter Briec & Kristiaan Kerstens & Philippe Venden Eeckaut, 2004. "Non-convex Technologies and Cost Functions: Definitions, Duality and Nonparametric Tests of Convexity," Journal of Economics, Springer, vol. 81(2), pages 155-192, 02.
- Briec, Walter & Kerstens, Kristiaan & Vyen Eeckaut, Philippe, 2002. "Non-Convex Technologies and Cost Functions: Definitions, Duality and Nonparametric Tests of Convexity," Efficiency Series Papers 2002/03, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
- W. Briec & K. Kerstens & P. Vanden Eeckaut, 2006. "Non-convex Technologies and Cost Functions: Definitions, Duality and Nonparametric Tests of Convexity," Post-Print hal-00211174, HAL.
- Chambers, Robert G. & Chung, Yangho & Fare, Rolf, 1996. "Benefit and Distance Functions," Journal of Economic Theory, Elsevier, vol. 70(2), pages 407-419, August.
- H. Leleu, 2009. "Mixing DEA and FDH models together," Post-Print halshs-00481985, HAL.
- Leleu, Herve, 2006. "A linear programming framework for free disposal hull technologies and cost functions: Primal and dual models," European Journal of Operational Research, Elsevier, vol. 168(2), pages 340-344, January.
- H. Leleu, 2006. "A linear programming framework for free disposal hull technologies and cost functions: primal and dual models," Post-Print hal-00204497, HAL.
- Kristof Witte & Rui Marques, 2011. "Big and beautiful? On non-parametrically measuring scale economies in non-convex technologies," Journal of Productivity Analysis, Springer, vol. 35(3), pages 213-226, June.
- Kristof De Witte & Rui C. Marcques, 2008. "Big and beautiful? On non-parametrically measuring scale economies in non-convex technologies," Working Papers Department of Economics ces0822, KU Leuven, Faculty of Economics and Business, Department of Economics.
- AGRELL, Per J. & BOGETOFT, Peter & BROCK, Michael & TIND, Jorgen, "undated". "Efficiency evaluation with convex pairs," CORE Discussion Papers RP 1828, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE). Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:ags:aaea13:149684. 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)
If references are entirely missing, you can add them using this form.