European Business Schools Librarian's Group

Department of Economics Working Papers,
Vienna University of Economics and Business, Department of Economics

No 59: Technical Efficiency in Noisy Multi-Output Settings

Dieter Gstach ()
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Dieter Gstach: Department of Economics, Vienna University of Economics & B.A.

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

JEL-codes: D24; C24; C14 August 1998

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