Notes on technical efficiency estimation with multiple inputs and outputs

Tsionas, Efthymios (2016) Notes on technical efficiency estimation with multiple inputs and outputs. European Journal of Operational Research, 249 (2). pp. 784-788. ISSN 0377-2217

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Abstract

Collier, Johnson and Ruggiero (2011) deal with the problem of estimating technical efficiency using regression analysis that allows multiple inputs and outputs. This revives an old problem in the analysis of production. In this note we provide an alternative maximum likelihood estimator that addresses the concerns. A Monte Carlo experiment shows that the technique works well in practice. A test for homotheticity, a critical assumption in Collier, Johnson and Ruggiero (2011) is constructed and its behavior is examined using Monte Carlo simulation and an empirical application to European banking.

Item Type:

Journal Article

Journal or Publication Title:

European Journal of Operational Research

Additional Information:

This is the author’s version of a work that was accepted for publication in European Journal of Operational Research. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in European Journal of Oerational Research, 249, 2, 2016 DOI: 10.1016/j.ejor.2015.10.036

Uncontrolled Keywords:

/dk/atira/pure/subjectarea/asjc/2600/2611

Subjects:

?? efficiencyleast squaresmultiple-output productionlimited information maximum likelihoodmodelling and simulationmanagement science and operations researchinformation systems and management ??

Departments:

Lancaster University Management School > Economics

ID Code:

78405

Deposited By:

ep_importer_pure

Deposited On:

03 Jun 2016 15:24

Refereed?:

Yes

Published?:

Published

Last Modified:

19 Apr 2024 01:27

URI:

https://eprints.lancs.ac.uk/id/eprint/78405