DEA, DFA and SFA: A comparison |
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| Authors: | Lennart Hjalmarsson Subal C. Kumbhakar Almas Heshmati |
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| Affiliation: | (1) Department of Economics, Göteborg University, Vasagatan 1, S-411 80 Göteborg, Sweden;(2) Department of Economics, University of Texas at Austin, 78712-1172 Austin, TX;(3) Department of Economics, Göteborg University, Vasagatan 1, S-411 80 Göteborg, Sweden |
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| Abstract: | The nonparametric data envelopment analysis (DEA) model has become increasingly popular in the analysis of productive efficiency, and the number of empirical applications is now very large. Recent theoretical and mathematical research has also contributed to a deeper understanding of the seemingly simple but inherently complex DEA model. Less effort has, however, been directed toward comparisons between DEA and other competing efficiency analysis models. This paper undertakes a comparison of the DEA, the deterministic parametric (DFA), and the stochastic frontier (SFA) models. Efficiency comparisons across models in the above categories are done based on 15 Colombian cement plants observed during 1968–1988. |
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| Keywords: | Productive efficiency data envelopment analysis deterministic frontiers stochastic frontiers panel data cement industry |
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