Benchmarking for Performance Evaluation: A Production by Subhash C. Ray, Subal C. Kumbhakar, Pami Dua

Posted by

By Subhash C. Ray, Subal C. Kumbhakar, Pami Dua

This ebook presents an in depth advent to the theoretical and methodological foundations of construction potency research utilizing benchmarking. of the extra well known tools of potency overview are Stochastic Frontier research (SFA) and knowledge Envelopment research (DEA), either one of that are in response to the idea that of a construction threat set and its frontier. counting on the assumed targets of the decision-making unit, a creation, expense, or revenue Frontier is made from saw information on enter and output amounts and costs. whereas SFA makes use of assorted greatest probability estimation suggestions to estimate a parametric frontier, DEA is determined by mathematical programming to create a nonparametric frontier. another replacement is the Convex Nonparametric Frontier, that is in response to the assumed convexity of the construction risk set and creates a piecewise linear frontier together with a couple of tangent hyper planes.

Three of the papers during this quantity supply a close and comparatively effortless to persist with exposition of the underlying thought from neoclassical construction economics and supply step by step directions at the applicable version to use in numerous contexts and the way to enforce them. Of specific charm are the directions on (i) tips on how to write the codes for various SFA types on STATA, (ii) the best way to write a VBA Macro for repetitive answer of the DEA challenge for every construction unit on Excel Solver, and (iii) easy methods to write the codes for the Nonparametric Convex Frontier estimation. the 3 different papers within the quantity are basically theoretical and should be of curiosity to PhD scholars and researchers hoping to make methodological and conceptual contributions to the sector of nonparametric potency analysis.

Show description

Read Online or Download Benchmarking for Performance Evaluation: A Production Frontier Approach PDF

Best microeconomics books

The Economics of Football

This ebook offers an unique fiscal research of the English expert soccer undefined. the commercial affects on judgements taken by way of proprietors, managers, avid gamers and spectators are all thought of, utilizing theoretical and empirical tools of monetary research. The empirical research attracts on English club-level info, with vast foreign comparisons.

On The Job Training

On-the-Job education surveys the new literature from either a theoretical and empirical point of view. The research of ways members receive and are paid for his or her abilities is key to hard work economics. the fundamental proposal of human capital conception is that employees and corporations put money into employees' abilities so one can elevate their productiveness, a lot as folks put money into monetary or actual resources to earn source of revenue.

Extra info for Benchmarking for Performance Evaluation: A Production Frontier Approach

Example text

Note that the equation also implies sign   @ðui Þ ¼ sign(w½kŠÞ: @z½kŠ ð1:42Þ Therefore, the sign of the coefficient reveals the direction of impact of zi on (ui). So if we do not compute the exact marginal effect, we may still say something about the direction of the impact by the sign of the coefficient. This is a convenient property, but the property does not always hold in models with a more complicated setup. Example Model 5: half-normal model with heterogeneity In this example, we estimate a half-normal model with an exogenous determinant of inefficiency (IT expenditure as a percentage of total expenditure, comp).

Therefore, by parameterizing r2 , we allow the effect of zi to affect the expected value of inefficiency. Marginal effects of the exogenous determinants If the effects of the exogenous factors on efficiency are the key concern, the maximum likelihood estimates of wu in Eq. 38) may not be very informative. This is because the relationship between Eðui Þ and zu is nonlinear, and so the slope coefficients of wu are not the marginal effects of zu. 5. This number itself tells us nothing about the magnitude of the kth variable’s (marginal) effect on the inefficiency.

1982), is to estimate the expected value of ui conditional on the composed error of the model: ei  vi À ui . This measure is known as the conditional mean of ui. The composed error contains individual-specific information, and so the conditional expectation yields observation-specific value of the inefficiency. This is like extracting signal from noise. Jondrow et al. C. -J. 27). Maximum likelihood estimates of the parameters are substituted into the equation to obtain the empirical estimate of the inefficiency index.

Download PDF sample

Rated 4.11 of 5 – based on 46 votes