In this paper we propose a new technique for incorporating environmental effects and statistical noise into a producer performance evaluation based on data envelopment analysis (DEA). The technique involves a three-stage analysis. In the first stage, DEA is applied to outputs and inputs only, to...

This paper introduces as an intertemporal variable cost indirect technology which permits technological change over time and allows for financial flexibility, i.e., intertemporal budgeting. It characterizes agencies which maximize outputs or services subject to the budget they face. We define...

This paper estimates a stochastic cost frontier for a sample of the non-life insurance industry in Thailand from 2000 to 2007. Our model explicitly considers the heteroscedasticity in the variances of the noise and inefficiency components that could affect the position of the cost frontier as...