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Department of Economics, WU (Wirtschaftsuniversität Wien) Working papers, Department of Economics, WU (Wirtschaftsuniversität Wien)

No 59:
Technical Efficiency in Noisy Multi-Output Settings

Dieter Gstach ()

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.

Keywords: Technical Efficiency; Stochastic Frontier; Stochastic DEA; Multi-Output; Non-Parametric Estimation; (follow links to similar papers)

JEL-Codes: D24; C24; C14; (follow links to similar papers)

August 1998

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