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Robustness Of Non-Parametric Measurement Of Efficiency And Risk Aversion

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  • Settlage, Daniel M.
  • Preckel, Paul V.

Abstract

This paper examines the performance of a risk-adjusted non-parametric approach to measuring efficiency and risk aversion. Prior work is extended to the case where agent behavior is motivated by expected utility maximization. Results indicate the approach significantly outperforms traditional efficiency measurement methods when applied to risk averse agents.

Suggested Citation

  • Settlage, Daniel M. & Preckel, Paul V., 2002. "Robustness Of Non-Parametric Measurement Of Efficiency And Risk Aversion," 2002 Annual meeting, July 28-31, Long Beach, CA 19765, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea02:19765
    DOI: 10.22004/ag.econ.19765
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    References listed on IDEAS

    as
    1. Gong, Byeong-Ho & Sickles, Robin C., 1992. "Finite sample evidence on the performance of stochastic frontiers and data envelopment analysis using panel data," Journal of Econometrics, Elsevier, vol. 51(1-2), pages 259-284.
    2. Forsund, Finn R. & Lovell, C. A. Knox & Schmidt, Peter, 1980. "A survey of frontier production functions and of their relationship to efficiency measurement," Journal of Econometrics, Elsevier, vol. 13(1), pages 5-25, May.
    3. Atanu Saha, 1993. "Expo-Power Utility: A ‘Flexible’ Form for Absolute and Relative Risk Aversion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(4), pages 905-913.
    4. Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 1-27, December.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    Risk and Uncertainty;

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