Scribd
Upload
15 views6 pages

ContentsLong Formatted A

This document summarizes a book that discusses techniques for measuring productive efficiency and productivity growth. The book has multiple chapters that cover topics such as the econometric approach to efficiency measurement, the mathematical programming (data envelopment analysis) approach, statistical inference for nonparametric frontier models, and the Malmquist productivity index. It provides an overview of the key definitions, models, and methods used in efficiency analysis and the measurement of productivity.

Uploaded by

YURI GAGARIN SABINO
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
15 views6 pages

ContentsLong Formatted A

This document summarizes a book that discusses techniques for measuring productive efficiency and productivity growth. The book has multiple chapters that cover topics such as the econometric approach to efficiency measurement, the mathematical programming (data envelopment analysis) approach, statistical inference for nonparametric frontier models, and the Malmquist productivity index. It provides an overview of the key definitions, models, and methods used in efficiency analysis and the measurement of productivity.

Uploaded by

YURI GAGARIN SABINO
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 6

See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/43517420

The Measurement of Productive Efficiency

Article · February 2008


DOI: 10.1093/acprof:oso/9780195183528.001.0001 · Source: OAI

CITATIONS READS
590 20,205

3 authors, including:

Harold O. Fried S. S. Schmidt


Union College Union College
40 PUBLICATIONS   4,452 CITATIONS    10 PUBLICATIONS   3,494 CITATIONS   

SEE PROFILE SEE PROFILE

All content following this page was uploaded by Harold O. Fried on 15 May 2014.

The user has requested enhancement of the downloaded file.


THE MEASUREMENT OF PRODUCTIVE EFFICIENCY
AND PRODUCTIVITY GROWTH
Edited by
HAROLD O. FRIED
Union College
C. A. KNOX LOVELL
University of Georgia
University of Queensland
SHELTON. S. SCHMIDT
Union College

Ch 1: Efficiency and Productivity


Harold O. Fried, C. A. Knox Lovell and Shelton S. Schmidt
1.1 Introduction
1.2 Background
1.3 Definitions and Measures of Economic Efficiency
1.4 Techniques for Efficiency Measurement
1.5 The Econometric Approach to Efficiency Measurement
1.5.1 Single equation cross-section models
1.5.2 Single equation panel data models
1.5.3 Multiple equation models
1.5.4 Shadow price models
1.6 The Mathematical Programming Approach to Efficiency Measurement
1.6.1 Basic DEA
1.6.2 A DEA model of economic efficiency
1.6.3 Panel data
1.6.4 Weight restrictions
1.6.5 Statistical foundations of DEA
1.7 Malmquist Productivity Indexes
1.7.1 Definitions and properties
1.7.2 Decomposing the Malmquist productivity index
1.7.3 Evaluating Malmquist
1.8 Approximating Malmquist
1.8.1 Superlative index numbers: Fisher and Törnqvist
1.8.2 An econometric approach
1.8.3 A mathematical programming approach
1.8.4 Evaluating the approximations
1.9 Concluding Remarks

1
Ch 2: The Econometric Approach to Efficiency Analysis
William H. Greene
2.1 Introduction
2.1.1 Modeling Production
2.1.2 History of Thought
2.1.3 Empirical Antecedents
2.1.4 Organization of the Survey
2.1.5 Preface
2.2 Production and Production Functions
2.2.1 Production
2.2.2 Modeling Production
2.2.3 Defining Efficiency
2.3 Frontier Production and Cost Functions
2.3.1 Least Squares Regression Based Estimation of Frontier Functions
2.3.2 Deterministic Frontier Models
2.3.3 Data Envelopment Analysis (DEA)
2.4 The Stochastic Frontier Model
2.4.1 Implications of Least Squares
2.4.2 Forming the Likelihood Function
2.4.3 The Normal – Half Normal Model
2.4.4 Normal Exponential and Normal Gamma Models
2.4.5 Bayesian Estimation
2.4.6 The Normal - Gamma Model
2.4.7 The Truncated Normal Model
2.4.8 Estimation by Corrected Ordinary Least Squares –Method of Moments Estimators
2.4.9 Other Specifications for Stochastic Frontier Models
2.5 Stochastic Frontier Cost Functions, Multiple Outputs, and Distance and Profit Functions:
Alternatives to the Production Frontier
2.5.1 Multiple Output Production Functions
2.5.2 Stochastic Frontier Cost Functions
2.5.3 Multiple Output Cost Functions
2.5.4 Distance Functions
2.5.5 Profit Functions
2.5.6 Output Oriented and Input Oriented Inefficiency
2.6 Heterogeneity in Stochastic Frontier Function Models
2.6.1 Heterogeneity
2.6.2 One Step and Two Step Models
2.6.3 Shifting the Production and Cost Function
2.6.4 Parameter Variation and Heterogeneous Technologies
2.6.5 Location Effects on the Inefficiency Model
2.6.6 Shifting the Underlying Mean of ui
2.6.7 Heteroscedasticity
2.6.8 The Scaling Property
2.7 Panel Data Models
2.7.1 Time Variation in Inefficiency
2.7.2 Distributional Assumptions
2.7.3 Fixed and Random Effects and Bayesian Approaches

2
2.8 Estimation of Technical Inefficiency
2.8.1 Estimators of Technical Inefficiency in the Stochastic Frontier Model
2.8.2 Characteristics of the Estimator
2.8.3 Does the Distribution Matter?
2.8.4 Confidence Intervals for Inefficiency
2.8.5 Fixed Effects Estimators
2.8.6 The Bayesian Estimators
2.8.7 A Comparison
2.9 Allocative Inefficiency and the Greene Problem
2.10 Applications
2.10.1 Computer Software
2.10.2 The Stochastic Frontier Model: Electricity Generation
2.10.3 Time Invariant and Time Varying Inefficiency: Airlines Panel Data
2.10.4 Random and Fixed Effects Models: Data on U.S. Banks
2.10.5 Heterogeneity in Production: World Health Organization Data
2.11 Conclusions

Ch 3: DEA – The Mathematical Programming Approach to Efficiency Analysis


Emmanuel Thanassoulis, Maria C. S. Portela, and Ozren Despić
3.1 Introduction
3.2 Production Possibility Sets
3.3 Efficiency Measurement
3.3.1 Radial measures of efficiency
3.3.2 The notion of targets and their relationship with measures of efficiency
3.3.3 Non-Radial measures of efficiency
3.3.4 Implied Modifications to Production Possibilities Sets Through Definitions of
Efficiency Measures
3.4 Economic Measures of Efficiency
3.4.1 Cost and Revenue Efficiency Measures
3.4.2 Profit Efficiency Measures
3.5 Scale Efficiency and Returns to Scale
3.5.1 The concept of returns to scale
3.5.2 Basic DEA models under non-constant returns to scale
3.5.3 Scale Efficiency
3.5.4 Identifying Local returns to scale
3.5.5 Estimating Most Productive Scale Size for a DMU
3.5.6 Scale Elasticity
3.5.7 Returns to Scale in Non-convex Technologies and Hybrid CRS and VRS Returns to
Scale
3.6 Beyond Well Behaved Data
3.6.1 Non−Isotonic and Bad Inputs and/or Outputs
3.6.2 Zeros in the Data
3.6.3 Negative Data
3.6.4 Outliers
3.6.5 Dimensionality
3.7 Value Judgments in DEA

3
3.7.1 Weight restrictions
3.7.2 Changes in the comparative set of DMUs
3.7.3 Interpreting Results from DEA models with WRs
3.8 Non-Discretionary Factors
3.8.1 The Frontier Separation Approach
3.8.2 The All-in-One Approach
3.8.3 The Two-Stage Approach
3.8.4 Other Approaches for Dealing with Non-Discretionary Variables
3.9 Target Setting and Benchmarking
3.9.1 Radial Targets and Efficient Peers
3.9.2 Theoretical Extensions to Target Settings & Benchmarking
3.9.3 Preference Target Setting and Benchmarking
3.9.4 Hybrid and Other Approaches to Target Setting
3.10 Sample Applications
3.10.1 Education
3.10.2 Banking
3.10.3 Regulation
3.10.4 Retail
3.10.5 Police
3.11 Conclusion

Ch 4: Statistical Inference in Nonparametric Frontier Models: Recent Developments


and Perspectives
Léopold Simar and Paul W. Wilson
4.1 Frontier Analysis and The Statistical Paradigm
4.1.1 The Frontier Model: Economic Theory
4.1.2 The Statistical Paradigm
4.2 The Nonparametric Envelopment Estimators
4.2.1 The Data Generating Process (DGP)
4.2.2 The FDH Estimator
4.2.3 The DEA Estimators
4.2.4 An Alternative Probabilistic Formulation of the DGP
4.2.5 Properties of FDH/DEA Estimators
4.3 Bootstrapping DEA and FDH Efficiency Scores
4.3.1 General principles
4.3.2 Bootstrap confidence intervals
4.3.3 Bootstrap bias corrections
4.3.4 Bootstrapping DEA in action
4.3.5 Practical Considerations for the Bootstrap
4.3.6 Bootstrapping FDH efficiency scores
4.3.7 Extensions of the bootstrap ideas
4.4 Improving the FDH estimator
4.4.1 Bias-corrected FDH
4.4.2 Linearly interpolated FDH: LFDH
4.5 Robust Nonparametric Frontier Estimators
4.5.1 Order-m frontiers

4
4.5.2 Order-α quantile frontiers
4.5.3 Outlier Detection
4.6 Explaining Efficiencies
4.6.1 Two-stage regression approach
4.6.2 Conditional Efficiency Measures
4.7 Parametric Approximations of Nonparametric Frontier
4.7.1 Parametric v. nonparametric models
4.7.2 Formalization of the problem and two-stage procedure
4.8 Open Issues and Conclusions
4.8.1 Allowing for noise in DEA/FDH
4.8.2 Inference with DEA/FDH estimators
4.8.3 Results for CRS case
4.8.4 Tools for dimension reduction
4.8.5 Final conclusions

Ch 5: Efficiency and Productivity: Malmquist and More


R. Färe, S. Grosskopf and D. Margaritis
5 Efficiency and Productivity: Malmquist and More
5.0 Introduction
5.1 Some Duality and Efficiency Theory
5.1.1 Profit and the Directional (Technology) Distance Function
5.1.2 Shephard and Farrell: Revenue Efficiency and Cost Efficiency
5.2 Productivity
5.2.1 Distance Function-Based Measures of Productivity: Malmquist, Hicks-Moorsteen
and Luenberger
5.2.2 Price-Related Productivity: Törnqvist, Fisher and Bennet-Bowley
5.2.3 Duality and Productivity
5.3 Decomposition of Productivity
5.3.1 Decomposition with Quality Change
5.3.2 Decomposing Malmquist Technical Change into Bias and Magnitude
5.3.3 The Many Decompositions of the Malmquist Index
5.4 Aggregation of Indexes and Indicators
5.4.1 Aggregation across Firms
5.4.2 Aggregation over Optimizers
5.5 Empirical Implementation
5.5.1 Activity Analysis Methods
5.5.2 Parametric Methods
5.5.3 Parameterizing the Decomposition of Malmquist and Luenberger Productivity
5.5.4 Empirical Illustration
5.5.5 Non-stationarity and Non-linear Functional Forms
5.6 Comparisons Based on Index Number Properties
5.7 Summing Up
5.8 Appendix

View publication stats

You might also like