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Alternative efficiency measures for multiple-output production

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UNSPECIFIED (2005) Alternative efficiency measures for multiple-output production. In: Conference on Current Development in Productivity and Efficiency Measurement, Univ Georgia, Athens, GA, OCT, 2002. Published in: JOURNAL OF ECONOMETRICS, 126 (2). pp. 411-444. ISSN 0304-4076. doi:10.1016/j.jeconom.2004.05.008

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Official URL: http://dx.doi.org/10.1016/j.jeconom.2004.05.008

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Abstract

This paper has two main purposes. Firstly, we develop various ways of defining efficiency in the case of multiple-output production. Our framework extends a previous model by allowing for nonseparability of inputs and outputs. We also specifically consider the case where some of the outputs are undesirable, such as pollutants. We investigate how these efficiency definitions relate to one another and to other approaches proposed in the literature. Secondly, we examine the behavior of these definitions in two examples of practically relevant size and complexity. One of these involves banking and the other agricultural data. Our main findings can be summarized as follows. For a given efficiency definition, efficiency rankings are found to be informative, despite the considerable uncertainty in the inference on efficiencies. It is, however, important for the researcher to select an efficiency concept appropriate to the particular issue under study, since different efficiency definitions can lead to quite different conclusions. (c) 2004 Elsevier B.V. All rights reserved.

Item Type: Conference Item (UNSPECIFIED)
Subjects: H Social Sciences > HC Economic History and Conditions
Q Science > QA Mathematics
H Social Sciences
Journal or Publication Title: JOURNAL OF ECONOMETRICS
Publisher: ELSEVIER SCIENCE SA
ISSN: 0304-4076
Official Date: June 2005
Dates:
DateEvent
June 2005UNSPECIFIED
Volume: 126
Number: 2
Number of Pages: 34
Page Range: pp. 411-444
DOI: 10.1016/j.jeconom.2004.05.008
Publication Status: Published
Title of Event: Conference on Current Development in Productivity and Efficiency Measurement
Location of Event: Univ Georgia, Athens, GA
Date(s) of Event: OCT, 2002

Data sourced from Thomson Reuters' Web of Knowledge

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