Download e-book for iPad: Advanced Robust and Nonparametric Methods in Efficiency by Cinzia Daraio

By Cinzia Daraio

ISBN-10: 0387351558

ISBN-13: 9780387351551

Offering a scientific and complete therapy of modern advancements in potency research, this publication makes on hand an intuitive but rigorous presentation of complicated nonparametric and powerful equipment, with functions for the research of economies of scale and scope, trade-offs in creation and repair actions, and motives of potency differentials.

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Extra resources for Advanced Robust and Nonparametric Methods in Efficiency Analysis: Methodology and Applications (Studies in Productivity and Efficiency)

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Among its several useful properties, one of the most important is the fact that the reciprocal of the direct input distance function has been proposed by Debreu (1951) as a coefficient of resource utilization, and by Farrell (1957) as a measure of technical efficiency. This property has both a theoretical and a practical significance. It allows the direct input distance function to serve two important roles, simultaneously. It provides a complete characterization of the structure of multi-input, multi-output efficient production technology, and a reciprocal measure of the distance from each producer to that efficient technology.

3 devoted to the presentation of the economic model, we can equivalently look at the efficient boundary of Ψ from the input space or from the output space. The input oriented framework, based on the input requirement set and its efficient boundary, aims at reducing the input amounts by as much as possible while keeping at least the present output levels. This is also called “inputsaving” approach to stress the fact that the outputs level remains unchanged and input quantities are reduced proportionately till the frontier is reached.

Practical computation of the FDH In practice, the FDH estimator is computed by a simple vector comparison procedure that amounts to a complete enumeration algorithm proposed in Tulkens (1993), which is now explained. 36 The measurement of efficiency Input Oriented Framework X2 B=(Xo,Yo) A . B’ C(y) . 3. FDH and DEA estimation of C(y) and ∂C(y). 4. FDH and DEA estimation of P (x) and ∂P (x). 37 The nonparametric frontier approach For a DMU (x0 , y0 ), in a first step, the set of observations which dominates it is determined, and then the estimate of its efficiency score, relative to the dominating facet of Ψ is computed.

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Advanced Robust and Nonparametric Methods in Efficiency Analysis: Methodology and Applications (Studies in Productivity and Efficiency) by Cinzia Daraio


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