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A framework for applied production theory should focus on the crucial features of the industry to be studied. First of all, to be useful for a dynamic study, a distinction has to be made between the theoretical production possibilities before investment takes place and the actual empirical...
Persistent link: https://www.econbiz.de/10011925922
We provide an axiomatic foundation for efficiency measurement in the full space, referred to as "graph efficiency" measurement by Färe, Grosskopf, and Lovell [1985]. We posit four types of axioms: indication, monotonicity, independence of units of measurement, and continuity. We analyze six...
Persistent link: https://www.econbiz.de/10014046424
We discuss the nonparametric approach to profit efficiency analysis at the firm and industry levels in the absence of complete price information, and propose two new insights. First, choosing one commodity (whose price is known) as a numeraire good enables us to measure profit inefficiency in...
Persistent link: https://www.econbiz.de/10012731720
banking sector applying different scientific methods. Nonparametric or parametric techniques, such as DEA with the Malmquist …
Persistent link: https://www.econbiz.de/10012178843
This article provides a generalization of the materials balance-based production model introduced by Coelli et al. (2007). Based on this, some new environmental efficiency (EE) measures are presented. The Coelli et al. (2007) EE measure and its extension by Rødseth (2016) produce biased...
Persistent link: https://www.econbiz.de/10012606693
This article first reviews the well-known nonparametric methods of decomposing productivity growth and finally argue that Färe et al. (1994)’s method of computing productivity growth is superior in spite of the fact that this model model is based on convexity postulate, which assumes away...
Persistent link: https://www.econbiz.de/10014039761
We propose a new scheme for measuring scale elasticity of production based on a new cost efficiency model developed in Tone (2002). Comparing our model with classical model we establish the superiority of our model over the latter based on the premise that the classical estimates of cost...
Persistent link: https://www.econbiz.de/10014039795
frontier translog production function and DEA are applied to data on the Indian steel industry for a period of eight years in … order to compare inferences about the production correspondence of the steel industry. Our results indicate that DEA is …
Persistent link: https://www.econbiz.de/10014039796
In this contribution, first the concept of returns to growth (RTG) of a high-tech firm facing hyper-competition in the new economy is introduced by describing a proportional relationship between growth in inputs and growth in outputs using the growth efficiency (GE) model of Sengupta (2002)....
Persistent link: https://www.econbiz.de/10014039807
Analysis (SFA) and nonparametric Data Envelopment Analysis (DEA). This paper attempts to combine the virtues of both approaches … nonparametric route of DEA that only imposes free disposability, convexity, and some specification of returns to scale. From the … the data. The resulting function will always take a piece-wise linear form analogous to the DEA frontiers. We discuss the …
Persistent link: https://www.econbiz.de/10014057860