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Efficiency of the Services Sector: a Parametric Approach

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  • Gisela Di Meglio

    (Departamento de Fundamentos del Análisis Económico II (Economía Cuantitativa) (Department of Foundations of Economic Analysis II (Quantitative Economics)), Instituto Complutense de Analisis Economico (ICAE). Facultad de Ciencias Económicas y Empresariales (Faculty of Economics and Business), Universidad Complutense de Madrid (Complutense University of Madrid))

  • Stefano Visintin

    (University of Amsterdam. Amsterdam Institute for Advanced Labour Studies. The Netherlands)

Abstract

The question if countries are achieving their maximum production given resource allocation is at the very centre of contemporary debates. The issue becomes even more relevant when directed to service activities, due to their cardinal role in modern societies. However, hardly any studies perform cross-country efficiency comparison of service sectors at aggregated level. The paper aims at measuring and comparing technical efficiency of (total and market) services across 16 developed economies during the past three decades. The empirical estimations are performed by means of frontier parametric techniques applied to both panel data and cross-sectional data. Benchmark figures, useful for cross-country comparison and policy analysis, are provided for efficiency scores and for their evolution across time.

Suggested Citation

  • Gisela Di Meglio & Stefano Visintin, 2014. "Efficiency of the Services Sector: a Parametric Approach," Documentos de Trabajo del ICAE 2014-19, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
    • Handle: RePEc:ucm:doicae:1419
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Service sector; Efficiency; Parametric methods; Panel data; Benchmarking.;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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