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Persistence of dynamic efficiency in Farrell models

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  • Jati Sengupta

Abstract

This article focuses on productivity transitions from low to high levels of efficiency over time in the framework of the Farrell efficiency model. This transition probability approach is applied in two empirical applications in order to test the persistence of Farrell efficiency over time. The first application involves the efficiency comparisons in the public sector, while the second in the private sector. Both applications appear to exhibit a high degree of efficiency persistence over time.

Suggested Citation

  • Jati Sengupta, 1997. "Persistence of dynamic efficiency in Farrell models," Applied Economics, Taylor & Francis Journals, vol. 29(5), pages 665-671.
    • Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:665-671
    DOI: 10.1080/000368497326877
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    References listed on IDEAS

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    1. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 1993. "The Measurement of Productive Efficiency: Techniques and Applications," OUP Catalogue, Oxford University Press, number 9780195072181.
    2. Dalen, D.M., 1993. "Testing for technical Change with Data Envelopment Analysis," Memorandum 1993_016, Oslo University, Department of Economics.
    3. Jati Sengupta, 1995. "Dynamic Farrell efficiency: a time series application," Applied Economics Letters, Taylor & Francis Journals, vol. 2(10), pages 363-366.
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    Cited by:

    1. Wang, Mei-Hui & Huang, Tai-Hsin, 2007. "A study on the persistence of Farrell's efficiency measure under a dynamic framework," European Journal of Operational Research, Elsevier, vol. 180(3), pages 1302-1316, August.
    2. Wanke, Peter & Barros, C.P., 2016. "Efficiency in Latin American airlines: A two-stage approach combining Virtual Frontier Dynamic DEA and Simplex Regression," Journal of Air Transport Management, Elsevier, vol. 54(C), pages 93-103.
    3. Stefanou, Spiro E., 2009. "A Dynamic Characterization of Efficiency," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 10(1), pages 1-16.

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