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Metafrontier efficiency analysis with convex and non-convex metatechnologies by stochastic nonparametric envelopment of data

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  • Afsharian, Mohsen

Abstract

This paper suggests how stochastic nonparametric envelopment of data (StoNED) can be extended as an estimator in the metafrontier efficiency analysis. Both convex and non-convex metatechnologies are formed and a semi-nonparametric estimation technique for the corresponding metafrontiers is developed. Remaining consistent with the metafrontier theory, the resulting estimated metafrontiers always envelope the estimated group frontiers.

Suggested Citation

  • Afsharian, Mohsen, 2017. "Metafrontier efficiency analysis with convex and non-convex metatechnologies by stochastic nonparametric envelopment of data," Economics Letters, Elsevier, vol. 160(C), pages 1-3.
    • Handle: RePEc:eee:ecolet:v:160:y:2017:i:c:p:1-3
    DOI: 10.1016/j.econlet.2017.08.006
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    References listed on IDEAS

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    1. Timo Kuosmanen & Andrew Johnson & Antti Saastamoinen, 2015. "Stochastic Nonparametric Approach to Efficiency Analysis: A Unified Framework," International Series in Operations Research & Management Science, in: Joe Zhu (ed.), Data Envelopment Analysis, edition 127, chapter 7, pages 191-244, Springer.
    2. George Battese & D. Rao & Christopher O'Donnell, 2004. "A Metafrontier Production Function for Estimation of Technical Efficiencies and Technology Gaps for Firms Operating Under Different Technologies," Journal of Productivity Analysis, Springer, vol. 21(1), pages 91-103, January.
    3. Kuosmanen, Timo, 2006. "Stochastic Nonparametric Envelopment of Data: Combining Virtues of SFA and DEA in a Unified Framework," Discussion Papers 11864, MTT Agrifood Research Finland.
    4. Timo Kuosmanen & Andrew L. Johnson, 2010. "Data Envelopment Analysis as Nonparametric Least-Squares Regression," Operations Research, INFORMS, vol. 58(1), pages 149-160, February.
    5. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
    6. Sipilainen, Timo & Kuosmanen, Timo & Kumbhakar, Subal C., 2008. "Measuring productivity differentials – An application to milk production in Nordic countries," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44277, European Association of Agricultural Economists.
    7. Hayami, Yujiro & Ruttan, Vernon W, 1970. "Agricultural Productivity Differences Among Countries," American Economic Review, American Economic Association, vol. 60(5), pages 895-911, December.
    8. Christopher O’Donnell & D. Rao & George Battese, 2008. "Metafrontier frameworks for the study of firm-level efficiencies and technology ratios," Empirical Economics, Springer, vol. 34(2), pages 231-255, March.
    9. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
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    Citations

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    Cited by:

    1. Mohsen Afsharian, 2020. "A metafrontier-based yardstick competition mechanism for incentivising units in centrally managed multi-group organisations," Annals of Operations Research, Springer, vol. 288(2), pages 681-700, May.
    2. Yantuan Yu & Yun Zhang & Xiao Miao, 2018. "Impacts of Dynamic Agglomeration Externalities on Eco-Efficiency: Empirical Evidence from China," IJERPH, MDPI, vol. 15(10), pages 1-27, October.
    3. Manuel Espitia‐Escuer & Lucia Isabel Garcia‐Cebrian, 2020. "Efficiency of football teams from an organisation management perspective," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(3), pages 321-338, April.
    4. Christina Bampatsou & George Halkos, 2022. "Meta-frontier analysis of technology gap for efficiency and productivity comparisons across different sub-groups of EU-27 countries," Economics Bulletin, AccessEcon, vol. 42(3), pages 1413-1421.
    5. Alda, Erik & Cuesta, Jose, 2019. "Measuring the efficiency of humanitarian aid," Economics Letters, Elsevier, vol. 183(C), pages 1-1.
    6. Afsharian, Mohsen & Ahn, Heinz & Harms, Sören Guntram, 2019. "Performance comparison of management groups under centralised management," European Journal of Operational Research, Elsevier, vol. 278(3), pages 845-854.
    7. Núñez, F. & Arcos-Vargas, A. & Villa, G., 2020. "Efficiency benchmarking and remuneration of Spanish electricity distribution companies," Utilities Policy, Elsevier, vol. 67(C).
    8. Kerstens, Kristiaan & O’Donnell, Christopher & Van de Woestyne, Ignace, 2019. "Metatechnology frontier and convexity: A restatement," European Journal of Operational Research, Elsevier, vol. 275(2), pages 780-792.
    9. Mahmood Mehdiloo & Jafar Sadeghi & Kristiaan Kerstens, 2024. "Top Down Axiomatic Modeling of Metatechnologies and Evaluating Directional Economic Efficiency," Working Papers 2024-EQM-03, IESEG School of Management.
    10. Yantuan Yu & Jianhuan Huang & Yanmin Shao, 2019. "The Sustainability Performance of Chinese Banks: A New Network Data Envelopment Analysis Approach and Panel Regression," Sustainability, MDPI, vol. 11(6), pages 1-25, March.
    11. Alexander Arévalo S & Víctor Giménez G & Diego Prior J, 2022. "Análisis de eficiencia en educación: una aplicación del método StoNED," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 92(2), pages 45-91, October.
    12. Le, Minh Hanh & Afsharian, Mohsen & Ahn, Heinz, 2021. "Inverse Frontier-based Benchmarking for Investigating the Efficiency and Achieving the Targets in the Vietnamese Education System," Omega, Elsevier, vol. 103(C).

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    More about this item

    Keywords

    Metafrontier analysis; Convex and non-convex metatechnologies; Stochastic nonparametric envelopment of data (StoNED);
    All these keywords.

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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