IDEAS home Printed from https://ideas.repec.org/p/oeg/wpaper/2004-04.html
   My bibliography  Save this paper

Technical and Allocative Efficiency in Spanish Port Cargo Handling Firms

Author

Listed:
  • Rodríguez-Álvarez, Ana
  • Tovar de la Fe, Beatriz
  • Trujillo, Lourdes

Abstract

Atkinson and Cornwell (1994) present two methods that permit the calculation of allocative inefficiency: the parametric approach and the error component approach. Färe an Grosskopf (1990) and Atkinson and Primont (2002) demonstrate that replacing the usual cost frontier with an input distance function can overcome the main drawbacks of the first approach by obtaining firm and time indexes of allocative efficiency. With regard to the second approach, the advantages of the distance function are developed in Rodríguez-Álvarez et al. (2004) which have dealt with the hypothesis in which the allocative efficiency is time-invariant and only varies across firms. In this paper we extend the analysis in the case in which the efficiency is firm and time-varying in both approaches. Moreover, we can calculate firm and time-varying technical efficiency and, separately, a measure of technical change. To do this, we present a distance system that is comprised of an input distance function and the share cost equations associated. We apply our methodology to a panel data using a sample of cargo handling firms in Spanish ports.

Suggested Citation

  • Rodríguez-Álvarez, Ana & Tovar de la Fe, Beatriz & Trujillo, Lourdes, 2004. "Technical and Allocative Efficiency in Spanish Port Cargo Handling Firms," Efficiency Series Papers 2004/04, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    • Handle: RePEc:oeg:wpaper:2004/04
    as

    Download full text from publisher

    File URL: https://www.unioviedo.es/oeg/ESP/esp_2004_04.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Atkinson, Scott E & Cornwell, Christopher, 1994. "Parametric Estimation of Technical and Allocative Inefficiency with Panel Data," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(1), pages 231-243, February.
    2. Estache, Antonio & Gonzalez, Marianela & Trujillo, Lourdes, 2002. "Efficiency Gains from Port Reform and the Potential for Yardstick Competition: Lessons from Mexico," World Development, Elsevier, vol. 30(4), pages 545-560, April.
    3. Kumbhakar, Subal C., 1990. "Production frontiers, panel data, and time-varying technical inefficiency," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 201-211.
    4. 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, Decembrie.
    5. Rafael Cuesta, 2000. "A Production Model With Firm-Specific Temporal Variation in Technical Inefficiency: With Application to Spanish Dairy Farms," Journal of Productivity Analysis, Springer, vol. 13(2), pages 139-158, March.
    6. Heshmati, Almas & Kumbhakar, Subal C. & Hjalmarsson, Lennart, 1995. "Efficiency of the Swedish pork industry: A farm level study using rotating panel data 1976-1988," European Journal of Operational Research, Elsevier, vol. 80(3), pages 519-533, February.
    7. Atkinson, Scott E. & Primont, Daniel, 2002. "Stochastic estimation of firm technology, inefficiency, and productivity growth using shadow cost and distance functions," Journal of Econometrics, Elsevier, vol. 108(2), pages 203-225, June.
    8. Ana Rodríguez‐Álvarez & C. A. Knox Lovell, 2004. "Excess capacity and expense preference behaviour in National Health Systems: an application to the Spanish public hospitals," Health Economics, John Wiley & Sons, Ltd., vol. 13(2), pages 157-169, February.
    9. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics, Blackwell, vol. 7(3-4), pages 185-208, October.
    10. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    11. Fare, Rolf & Grosskopf, Shawna, 1995. "Nonparametric tests of regularity, Farrell efficiency, and goodness-of-fit," Journal of Econometrics, Elsevier, vol. 69(2), pages 415-425, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rodriguez-Alvarez, Ana & Tovar, Beatriz & Trujillo, Lourdes, 2007. "Firm and time varying technical and allocative efficiency: An application to port cargo handling firms," International Journal of Production Economics, Elsevier, vol. 109(1-2), pages 149-161, September.
    2. Kristin Roll, 2013. "Measuring performance, development and growth when restricting flexibility," Journal of Productivity Analysis, Springer, vol. 39(1), pages 15-25, February.
    3. Jung Woo Kim & Jeong Yeon Lee & Jae Yong Kim & Hoe Kyung Lee, 2005. "Technical Efficiency in the Iron and Steel Industry: A Stochastic Frontier Approach," Economics Study Area Working Papers 75, East-West Center, Economics Study Area.
    4. Pierani, Pierpaolo & Rizzi, Pier Luigi, 2003. "Technology and efficiency in a panel of Italian dairy farms: an SGM restricted cost function approach," Agricultural Economics, Blackwell, vol. 29(2), pages 195-209, October.
    5. Gonzalez, M. & Trujillo, L., 2007. "Efficiency measurement in the port industry: a survey of the empirical evidence," Working Papers 07/08, Department of Economics, City University London.
    6. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
    7. Dhehibi, Boubaker & Lachaal, Lassaad & Elloumi, Mohamed & Messaoud, Emna B., 2007. "Measurement and Sources of Technical Inefficiency in the Tunisian Citrus Growing Sector," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9391, European Association of Agricultural Economists.
    8. Subal C. Kumbhakar & Christopher F. Parmeter & Valentin Zelenyuk, 2022. "Stochastic Frontier Analysis: Foundations and Advances I," Springer Books, in: Subhash C. Ray & Robert G. Chambers & Subal C. Kumbhakar (ed.), Handbook of Production Economics, chapter 8, pages 331-370, Springer.
    9. Coelli, Tim J. & Battese, George E., 1996. "Identification Of Factors Which Influence The Technical Inefficiency Of Indian Farmers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(2), pages 1-26, August.
    10. Mehta, Rajesh & Narrod, Clare & Tiongco, Marites, 2008. "Livestock industrialization, trade and social-health-environment impacts in developing countries: a case of Indian poultry sector," MPRA Paper 32678, University Library of Munich, Germany.
    11. Thiam, Abdourahmane & Bravo-Ureta, Boris E. & Rivas, Teodoro E., 2001. "Technical efficiency in developing country agriculture: a meta-analysis," Agricultural Economics, Blackwell, vol. 25(2-3), pages 235-243, September.
    12. Mkhabela, Thulasizwe S., 2005. "Technical efficiency in a vegetable based mixed-cropping sector in Tugela Ferry, Msinga District, KwaZulu-Natal," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(2), pages 1-18, June.
    13. Olli-Pekka Kuusela & Maria S. Bowman & Gregory S. Amacher & Richard B. Howarth & Nadine T. Laporte, 2020. "Does infrastructure and resource access matter for technical efficiency? An empirical analysis of fishing and fuelwood collection in Mozambique," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(3), pages 1811-1837, March.
    14. Jiang, Nan & Sharp, Basil, 2014. "Cost Efficiency of Dairy Farming in New Zealand: A Stochastic Frontier Analysis," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 43(3), pages 1-13, December.
    15. Fabio Pieri & Enrico Zaninotto, 2010. "The Impact of Vertical Integration and Outsourcing on Firm Efficiency: Evidence from the Italian Machine Tool Industry," DISA Working Papers 1001, Department of Computer and Management Sciences, University of Trento, Italy, revised 11 Mar 2010.
    16. Antonio Alvarez & Carlos Arias, 2014. "A selection of relevant issues in applied stochastic frontier analysis," Economics and Business Letters, Oviedo University Press, vol. 3(1), pages 3-11.
    17. William Horrace & Seth Richards-Shubik & Ian Wright, 2015. "Expected efficiency ranks from parametric stochastic frontier models," Empirical Economics, Springer, vol. 48(2), pages 829-848, March.
    18. Lee, Young Hoon, 2006. "A stochastic production frontier model with group-specific temporal variation in technical efficiency," European Journal of Operational Research, Elsevier, vol. 174(3), pages 1616-1630, November.
    19. repec:lic:licosd:12302 is not listed on IDEAS
    20. Liu, Xiao-Yan & Pollitt, Michael G. & Xie, Bai-Chen & Liu, Li-Qiu, 2019. "Does environmental heterogeneity affect the productive efficiency of grid utilities in China?," Energy Economics, Elsevier, vol. 83(C), pages 333-344.
    21. Sakano, Ryoichi & Obeng, Kofi, 2011. "Examining the Inefficiency of Transit Systems Using Latent Class Stochastic Frontier Models," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 50(2).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oeg:wpaper:2004/04. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Luis Orea or David Roibas (email available below). General contact details of provider: https://edirc.repec.org/data/geovies.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.