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A Consistent Approach to Cost Efficiency Measurement

Author

Listed:
  • Bitros, G.C.
  • Tsionas, E.G.

Abstract

Consistent specifications of the allocative inefficiency function in cost plus input share equations systems may be difficult, if not impossible, to find because most plausible ones violate certain reasonable a priori conditions. Moreover, the models to which they lead give rise to highly non-linear likelihood functions that are very hard to estimate.

Suggested Citation

  • Bitros, G.C. & Tsionas, E.G., 2001. "A Consistent Approach to Cost Efficiency Measurement," DEOS Working Papers 124, Athens University of Economics and Business.
  • Handle: RePEc:aue:wpaper:124
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    Cited by:

    1. Johannes Sauer & Klaus Frohberg & Henrich Hockmann, 2006. "Stochastic efficiency measurement: The curse of theoretical consistency," Journal of Applied Economics, Universidad del CEMA, vol. 9, pages 139-166, May.
    2. Vergés, Joaquim, 2014. "Evaluación de la eficiencia comparativa de empresas y entidades productivas: Indicadores y técnicas de análisis
      [Evaluating comparative efficiency of companies and productive entities: Measures and
      ," MPRA Paper 58329, University Library of Munich, Germany.

    More about this item

    Keywords

    COSTS ; MODELS ; LABOUR;

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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