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Estimation of technical inefficiency in manufacturing industry

Applied Economics, 1991
An extension of the method of estimation of technical ineficiency is presented based on the stochastic production frontier approach. A derivation of the estimation procedure is given and the technique applied at the industry level. The choice of production function is considered and empirical results pertaining to Australia and the UK are presented.
Alison Green   +2 more
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AGGLOMERATION EXTERNALITIES, PRODUCTIVITY, AND TECHNICAL INEFFICIENCY*

Journal of Regional Science, 2006
ABSTRACT Agglomeration externalities can have positive effects on both the production possibility frontier and technical inefficiency of firms. Increased levels of localized knowledge spillovers and substitution of internal inputs with external inputs may lead to fewer errors in decision‐making and execution of production tasks, thus causing firms to ...
Tveteras, R   +2 more
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On technical inefficiency indicators at the industry level

International Journal of Production Economics, 2018
Abstract In this note, we show how alternative measures of technical inefficiency at the industry level–evaluated along different direction vectors–are related to one another. We exploit the homogeneity property of the directional distance function with respect to the direction vector, to verify that aggregate (industry) efficiency evaluated relative
Rolf Färe   +2 more
openaire   +1 more source

Farms' technical inefficiencies in the presence of government programs

2007
We focus on determining the impacts of government programs on farms’ technical inefficiency levels. We use Kumbhakar’s stochastic frontier model that accounts for both production risks and risk preferences. Our theoretical framework shows that decoupled government transfers are likely to increase (decrease) DARA (IARA) farmers’ production ...
Serra, Teresa   +5 more
openaire   +1 more source

Decomposing technical inefficiency using the principle of least action

European Journal of Operational Research, 2014
zbMATH Open Web Interface contents unavailable due to conflicting licenses.
Juan Aparicio   +3 more
openaire   +1 more source

Technical Inefficiency of Chili Farms in Thailand

2017
The primary purpose of this study is to measure and investigate factors affecting technical inefficiency of chili farms in Thailand. This study applies a stochastic frontier production function approach to measure farm-specific technical inefficiency using the 2013 farm-level cross-sectional survey data of Thai chili farms in a single estimation ...
Krasachat, Wirat, Krasachat, Wirat
openaire   +1 more source

Estimation of Technical Inefficiencies with Heterogeneous Technologies

Journal of Productivity Analysis, 2004
This paper considers the measurement of firm's specific (in)efficiency while allows for the possible heterogeneous technologies adopted by different firms. A flexible stochastic frontier model with random coefficients is proposed to distinguish technical inefficiency from technological differences across firms.
openaire   +1 more source

Environmental regulation of technically inefficient firms

Economics Letters, 2013
This paper presents a model in which a technically inefficient firm is responsible for the emissions of pollutants. We derive second-best regulatory schemes (tax and quota) assuming that the firm’s technical efficiency is unknown to the regulator.
openaire   +1 more source

The Impact of Technical Inefficiency on Business Management

2018
The author highlights the short-term impact of technical inefficiency on business profitability. In the short-term analysis, technical efficiency is the necessary, but not sufficient, condition for achieving economic efficiency. Technical efficiency is measured by the degree of use of the maximum production capacity available to the company.
openaire   +1 more source

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