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Notes on technical efficiency estimation with multiple inputs and outputs

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  • Tsionas, Mike G.

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.

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  • Tsionas, Mike G., 2016. "Notes on technical efficiency estimation with multiple inputs and outputs," European Journal of Operational Research, Elsevier, vol. 249(2), pages 784-788.
    • Handle: RePEc:eee:ejores:v:249:y:2016:i:2:p:784-788
    DOI: 10.1016/j.ejor.2015.10.036
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    References listed on IDEAS

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    5. Léopold Simar & Paul Wilson, 2011. "Two-stage DEA: caveat emptor," Journal of Productivity Analysis, Springer, vol. 36(2), pages 205-218, October.
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    7. anonymous, 1976. "The economy in 1975," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Feb, pages 71-81.
    8. Collier, Trevor & Johnson, Andrew L. & Ruggiero, John, 2011. "Technical efficiency estimation with multiple inputs and multiple outputs using regression analysis," European Journal of Operational Research, Elsevier, vol. 208(2), pages 153-160, January.
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    Cited by:

    1. Tsionas, Euthimios G. & Mamatzakis, Emmanuel C., 2017. "Adjustment costs in the technical efficiency: An application to global banking," European Journal of Operational Research, Elsevier, vol. 256(2), pages 640-649.

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