Measurement of technical and allocative efficiencies using a CES cost frontier: a benchmarking study of Japanese transmission-distribution electricity

This paper estimates the technical and allocative inefficiencies of the transmission-distribution sector of Japanese electric utilities using a panel data during the 1981–1998 period. A stochastic production frontier of the CES form is jointly estimated with input demand equations. Taking advantage of the self-duality, we retrieve the cost frontier by which the impacts of technical and allocative inefficiencies on costs and input demands are measured. The estimated elasticity of substitution is significantly different from unity in favor of the CES specification over the Cobb–Douglas. The results show that observed costs are 9 to 48% higher than the efficient level; technical inefficiency raises costs by 1 to 28%, while allocative inefficiency does so by 8 to 30%. Although their impacts on costs are similar, technical inefficiency more fluctuates so the differences in the performance of utilities are mainly due to technical inefficiency. We also find a substantial over-utilization of capital for all utilities.

Technical and scale efficiencies of meat goat farms in the USA

This study determines i) scale and technical efficiencies, ii) marginal productive contributions for inputs and outputs and iii) efficiency drivers of meat goat farms in the USA. We estimate an input distance function (IDF) using a stochastic production frontier (SPF) technique. The average technical efficiency (TE) for the USA meat goat whole farm was 0.74. The operator education level, percentage of annual net farm income from the goat operation, regional differences and holding of an off farm job are the efficiency drivers of USA meat goat farms. We find increasing returns to scale (RTS) for USA meat goat farms. Our results suggest that USA meat goat farms can be scale efficient if their optimal size of operation is greater than approximately 64 goats or greater than 40 breeding does. Empirical Monte Carlo (MC) simulation techniques show the consistency of finite-sample properties for the input distance function.     

测度政府技术效率的模型与方法比较研究

技术效率是在产出规模不变,市场价格不变的条件下,按照既定的要素投入比例所能达到的最小生产成本占实际生产成本的百分比。政府技术效率是广义的政府绩效或效率的一个部分,它是政府提供公共服务过程中能够测度的政府投入与政府产出之间的比例关系。测度政府技术效率主要的模型与方法有非参数前沿法和参数前沿法。非参数前沿法主要包括数据包络法分析（DEA）和自由处置包（FDH）,而参数前沿法主要包括随机前沿法（SFA）、模糊边界法（TFA）和确定性前沿法（DFA）。通过建立模型科学对政府技术效率进行评估与测度可提高政府各个方面的科学性和有效性,从而促进政府技术效率的提高。     

Firm exit and technical inefficiency

The purpose of the paper is to examine formally the fundamental implication that technical inefficiency (TI) is related to firm exit. Traditional stochastic frontier models allow for the measurement of TI but do not allow for a direct effect of TI on exit. We propose a model which allows for such effects and consists of a stochastic frontier model, and an additional equation that describes the probability of exit as a function of covariates and TI. Since TI is unobserved, econometric complications arise, and obtaining consistent estimates is non-trivial due to the presence of integrals in the likelihood function. We propose and implement maximum likelihood estimation one step, employing data for 3,404 manufacturing firms in Greece. We find significant positive effects from TI on the probability of exit. We also propose and provide measures of TI that respect the fact that unobserved TI affects the probability of exit and compare them to TI measures from the traditional stochastic frontier model.

中国烟草加工企业技术效率分析——基于参数方法与非参数方法的对比研究

针对中国烟草加工企业因规模扩张而出现的管理效率低下等问题,使用2000--2006年企业层面的截面数据,运用参数方法和非参数方法测算了中国烟草加工企业的技术效率,并对两种方法的测算结果进行了比较分析。结果表明：两种测算结果存在较高的相关性,测算结果比较可靠;2000--2006年中国烟草加工企业的平均技术效率为0．74～0．79,具有稳步上升趋势;行业整体规模效率较高,但规模报酬递减的企业所占的比重有所增大。     

Regulation and efficiency in transition: the case of Romanian banks

Using disaggregated panel data for the period 1996–2002, this paper estimates the cost efficiency of Romanian banks and relates it to regulation implemented by the National Bank of Romania. We estimate efficiency using a model that combines the frameworks of both stochastic frontier analysis and shadow cost functions. Our results indicate that, for all types of banks, the cost of technical inefficiency decreases in the years following tightening of regulation. A significant part of this decrease can be attributed to the policy change. Overall, the short-run increase in cost due to additional regulation exceeds the benefits from reduced technical inefficiency. However, our model does not account for other benefits, besides changes in X-inefficiency, such as stability of the banking system, which may be significant.      

Estimation of technical inefficiency effects using panel data and doubly heteroscedastic stochastic production frontiers

In previous studies, measures of technical inefficiency effects derived from stochastic production frontiers have been estimated from residuals which are sensitive to specification errors. This study corrects for this inaccuracy by extending the doubly heteroscedastic stochastic cost frontier suggested by Hadri (1999) to the model for technical inefficiency effects. This model is a stochastic frontier production function for panel data as proposed by Battese and Coelli (1995). The study uses, for illustration of the techniques, data on 101 mainly cereal farms in England. We find that the correction for heteroscedasticity is supported by the data. Both point estimates and confidence intervals for technical efficiencies are provided. The confidence intervals are constructed by extending the “Battese-Coelli” method reported by Horrace and Schmidt (1996) by allowing the technical inefficiency to be time varying and the disturbance terms to be heteroscedastic. The confidence intervals reveal the precision of technical efficiency estimates and show the deficiencies of making inferences based exclusively on point estimates. First version received: March 2000/Final version received: Oct. 2001 RID="*" ID="*"  The authors are grateful to the Economic and Social Research Council for access to their Data Archive which has provided the data for this research. We are indebted to Badi Baltagi and two anonymous referees for their helpful comments and suggestions. The usual caveat applies.     

Modelling Exogenous Variables in Human Capital Formation through a Heteroscedastic Stochastic Frontier

The objective of this paper is to suggest the use of a stochastic frontier model in which the inefficiency component is heteroscedastic in the measurement of technical efficiency in Human Capital Formation in the Italian University System. The heteroscedastic frontier model enables one to consider the effect of students’ individual characteristics and the influences of the resources and organization of the specific faculty on efficiency. The suggested model is applied to the case of Florence University graduates. The results show that the model specification is strongly supported by the data. Moreover, the suggested specification explains variation in technical efficiency in terms of graduate-specific factors. The technical efficiency scores obtained are comparable across faculties.

Impact of the adoption of information and communication technologies on firm efficiency in the Tunisian manufacturing sector

This paper aims at measuring the impact of information and communication technology use on the efficiency of the Tunisian manufacturing sector at the firm level within a simple theoretical framework. We are using a firm-level panel data for the manufacturing sector in Tunisia to investigate whether adoption of ICT influences efficiency in factor use. The analysis is conducted through the use of a parametric method to measure technical efficiency. We estimate a stochastic production frontier and the relationship aims to explain technical efficiency differentials in a single stage as suggested by Battese and Coelli [Battesse, G.E, Coelli, T.J. (1995). A model for technical inefficiency in a stochastic frontier production function for panel data. Empirical Economics, 20, 325–332].The results have confirmed the presence of positive returns to ICT capital. We have found that the impact of ICT on efficiency is strong. Our results also suggest that it is important to carefully control for human capital related characteristics of employment when studying the effect of ICT. The evidence shows that achieving benefits from investment in ICT requires complementary investments and changes in human capital. This means that the combined use of ICT and human capital in a firm would enhance its efficiency beyond the direct effects of these factors taken alone.     

The measurement of environmental economic inefficiency with pollution-generating technologies

This study introduces the measurement of environmental inefficiency from an economic perspective. We develop our proposal using the latest by-production models that consider two separate and parallel technologies: a standard technology generating good outputs, and a polluting technology for the by-production of bad outputs. While research into environmental inefficiency incorporating undesirable or bad outputs from a technological perspective is well established, no significant attempts have been made to extend it to the economic sphere. Based on the definition of net profits, we develop an economic inefficiency measure that accounts for suboptimal behavior in the form of foregone private revenue and environmental cost excess. We show that economic inefficiency can be consistently decomposed according to technical and allocative criteria, considering the two separate technologies and market prices, respectively. We illustrate the empirical implementation of our approach using a dataset on agriculture at the level of US states.     

Estimating a mixture of stochastic frontier regression models via the em algorithm: A multiproduct cost function application

Researchers have become increasingly interested in estimating mixtures of stochastic frontiers. Mester (1993), Caudill (1993), and Polachek and Yoon (1987), for example, estimate stochastic frontier models for different regimes, assuming sample separation information is given. Building on earlier work by Lee and Porter (1984), Douglas, Conway, and Ferrier (1995) estimate a stochastic frontier switching regression model in the presence of noisy sample separation information. The purpose of this paper is to extend earlier work by estimating a mixture of stochastic frontiers assuming no sample separation information. This case is more likely to occur in practice than even noisy sample separation information. In order to estimate a mixture of stochastic frontiers with no sample separation information, an EM algorithm to obtain maximum likelihood estimates is developed. The algorithm is used to estimate a mixture of stochastic (cost) frontiers using data on U.S. savings and loans for the years 1986, 1987, and 1988. Statistical evidence is found supporting the existence of a mixture of stochastic frontiers. First version received: 3/13/01/Final version received: 6/17/02 RID="*" ID="*"  I am grateful to Ram Acharya, Janice Caudill, and especially James R. Barth for several helpful comments on an earlier version of the paper. During the revision process I benefitted greatly from the suggestions of the Associate Editor and three anonymous referees.     

海洋新区政策对沿海地区经济效率的影响研究——以舟山海洋新区为例

经济发展的质量可以通过经济效率进行评价。为探讨舟山群岛新区的设立对该地区经济发展质量的影响,将数据包络分析与反事实分析相结合,首先通过收集1995-2015年江浙皖 21个地级城市的投入产出经济数据,利用数据包络分析方法测算这些城市在上述 21年间的经济效率;然后根据测算结果,以 “反事实”分析方法量化研究舟山群岛新区的设立对舟山经济效率的影响。研究表明,舟山群岛新区设立在一定时期内提高了该地区的经济效率,但作用时间有限,今后还需要对舟山现有经济增长方式及时加以改进。     

地方财政支农投入与农业技术效率的省际差异:1995～2011年

运用参数法中的随机前沿分析法,结合我国1995—2011年的省级面板数据,选取地方财政"一般预算支出"中的"农林水事务"支出作为代理变量,分析地方财政支农投入对农业技术效率的影响,发现地方财政支农投入对于农业技术效率以及农业产出具有显著的积极作用,财政支农投入差异是我国各省市农业技术效率差异的重要根源之一。但鉴于目前我国在中央与地方的财政分配上严重倾向于中央财政,不少省市的地方财政收入很有限,财政支农投入的数量、结构、区域分布等方面都亟待调整和完善。     

Stability analysis and efficiency determinants: empirical evidence

Efficiency determinants analysis is a main contemporary component in the productive efficiency literature. Two-stage data envelopment analysis (DEA) procedure supposed a turning point in the methodology as the significance of a certain exogenous factor can provide policymakers with accurate information for future strategic decisions, but a deeper scrutiny into the importance of each factor remains unsettled. This article provides a novelty theoretical extension and empirical application for the two-stage DEA bootstrap procedure. We define the stability coefficient (SC) whose magnitude reveals the effect of each exogenous factor in the efficiency estimates. We present empirical evidence to examine the hypothesis that the efficiency of the 17 Spanish tourism regions for the average period data 2005–2013 is determined by a group of contextual variables, illustrating how the SCs strengthen knowledge concerning the significance of each potential attractor. The results help us to classify the significant attractors into strong and weak, accordingly enhancing the public or private decision process, and henceforth avoiding the wastefulness of decision-making units spending.     

中国地区工业知识生产效率测算

文章运用1996-2003年我国29个省(自治区,直辖市)的大中型工业企业面板数据,以新产品开发项目数衡量创新产出,以研发资本存量和研发人员表示创新投入,采用数据包络分析和随机前沿分析方法,对我国地区工业的知识生产效率进行了测算和分析。分析结果表明,用随机前沿法测算的知识生产效率较大而且较为稳定;各地区工业的知识生产效率存在较大差异,具有明显的不均衡发展特征;总体而言,我国地区工业的知识生产效率偏低,存在较大的改进潜力。     

海峡两岸证券业经营效率比较研究:基于Metafrontier方法

本文将Metafrontier思想与BCC-DEA模型相结合,综合应用Metafrontier DEA方法、Malmquist全要素生产率指数和Tobit模型,客观地评价具有不同生产技术的两岸证券商的经营效率。结果表明:台湾证券商发展水平趋同,大陆证券商良莠不齐,但竞争力逐渐提升;台湾证券商技术水平落后于大陆;大陆全要素生产率逐渐改善,台湾逐渐衰退;资产总额、负债比、地区生产总值是影响技术效率的关键因素,负债比、经济自由度、地区生产总值是影响技术落差的关键因素;金融危机对两岸证券业冲击显著。     

Environmental regulation and U.S. states' technical inefficiency

Using data on 48 states from 1982–1994, we estimate the impact of environmental regulation on technical inefficiency of U.S. states' manufacturing sector. The result indicates that environmental stringency has significant and positive impacts on U.S. states' technical inefficiency.     

The use of data envelopment analysis for the detection of price above the competitive level

Economic theory can predict the impact of exogenous influences on the equilibrium prices in a market. However, it is difficult to measure the magnitude of such effects because the appropriate data are usually not available. In this paper a new approach to comparing prices is explored using individual firm data which are typically available. If the firms in different markets can be assumed to use the same technology, price differentials can be inferred from the estimates can be assumed to use the same technology, price differentials can be inferred from the estimates of best practice frontiers. The new approach is applied to data on the Swiss construction industry in different cantons. In some cantons the market can be said to be competitive, in others non-competitive procurement rules are expected to raise equilibrium prices. The data envelopment analysis estimates the price differential to be approximately equal to 7.5%.Helpful criticism from participants of a seminar at the Business Institute of the University of Vienna are gratefully acknowledged.     

Using data envelopment analysis approach to estimate the health production efficiencies in China

By using Data Envelopment Analysis approach, we treat the health production system in a certain province as a Decision Making Unit (DMU), identify its inputs and outputs, evaluate its technical efficiency in 1982, 1990 and 2000 respectively, and further analyze the relationship between efficiency scores and social-environmental variables. This paper has found several interesting findings. Firstly, provinces on frontier in different year are different, but provinces far from the frontier keep unchanged. The average efficiency of health production has made a significant progress from 1982 to 2000. Secondly, all provinces in China can be divided into six categories in terms of health production outcome and efficiency, and each category has specific approach of improving health production efficiency. Thirdly, significant differences in health production efficiencies have been found among the eastern, middle and western regions in China, and among the eastern and middle regions. At last, there is significant positive relationship between population density and health production efficiency but negative relationship (not very significant) between the proportions of public health expenditure in total expense and efficiency. Maybe it is the result of inappropriate tendency of public expenditure. The relationship between abilities to pay for health care services and efficiency in urban areas is opposite to that in rural areas. One possible reason is the totally different income and public services treatments between rural and urban residents. Therefore, it is necessary to adjust health policies and service provisions which are specifically designed to different population groups. __________ Translated from Jingji Yanjiu 经济研究 (Economic Research Journal), 2006, (7): 92–105