Technical efficiency in noisy multi-output settings

Technical efficiency in noisy multi-output settings

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Article ID: iaor20001875
Country: Germany
Volume: 7
Issue: 2
Start Page Number: 93
End Page Number: 110
Publication Date: Apr 1999
Journal: Central European Journal of Operations Research
Authors:
Abstract:

This paper surveys four distinct approaches to frontier estimation of multi-output (and simultaneously multi-input) technologies, when nothing but noisy quantity data are available. Parametrized distributions for inefficiency and noise are necessary for identification of inefficiency, when only cross-sectional data are available. In other respects suitable techniques may differ widely, as is shown. A final technique presented rigorously exploits the possibilities from panel-data by dropping parametrization of distributions as well as functional forms. It is illustrated how this last technique can be coupled with the others to provide a state-of-the art estimation procedure for this setting.

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