In this paper we develop and implement a methodology for analysing the sources of variation in environmental efficiency across producers. We formulate a two-stage model. In the first stage we use stochastic frontier analysis to estimate both technical and environmental efficiency. In the second stage we again use stochastic frontier analysis to regress estimated environmental efficiency scores ...

This study uses a generalized stochastic frontier framework to model a multiple-output rice production system and analyses farm-level technical inefficiency of rice farming in Assam, India. Primary data for this study was collected in 2009-2010 from 310 farm-households in four non-contiguous districts of Dhubri, Morigaon, Dibrugarh, and Cachar that are located in different agro-climatic regions...

The purpose of this paper is to quantify the efficiency with which Australian universities utilise their teaching resources. The study estimates the cost efficiency of 36 universities over the period 1995-2002 using stochastic frontier analysis. The present study differs from previous cost and efficiency studies of Australian universities in two respects. First, it employs stochastic frontier a...

In recent years, WHO and other individual researchers have advocated estimation of health system performance through stochastic frontier models. It provides an idealized yardstick to evaluate economic performance of health system. So far attempts in India have remained focused at state level analysis. This paper attempts a sub-state level analysis for an affluent Indian state, namely Punjab, by...

This paper provides estimation method to measure technical efficiency of production units and the speed of adjustment of output, both varying with time, from a dynamic stochastic production frontier that incorporates the sluggish adjustment of inputs. Using a panel dataset on private manufacturing establishments in Egypt, I find that the speed of adjustment of output is lower than unity in ever...

The “resource-based view of the firm” has become an important conceptual framework in strategic management but has been widely criticized for lack of an empirical base. To address this deficit, we utilize a new method for identifying inter-firm differences in efficiency within the context of stochastic frontier production functions. Using data on Japanese and U.S. automobile manufacturers, we d...

The most commonly used approaches to parametric (stochastic frontier) analysis of efficiency in panel data, notably the fixed and random effects models, fail to distinguish between cross individual heterogeneity and inefficiency. This blending of effects is particularly problematic in the World Health Organization's (WHO) panel data set on health care delivery, which is a 191 country, 5-year pa...

Ž . We examine the pricing of initial public offering IPO and seasoned equity offering Ž . SEO firms using a stochastic frontier methodology. The stochastic frontier framework models the difference between the maximum possible value of the firm and its actual market capitalization at the time of the offering as a function of observable firm characteristics. Using a new data set, we find that co...

In the standard stochastic frontier model, the two-sided error term V and the one-sided technical inefficiency error term W are assumed to be independent. In this paper, we relax this assumption by modeling the dependence between V and W using copulas. Nine copula families are considered and their parameters are estimated using maximum simulated likelihood. The best model is then selected using...

This paper contributes to the discussion about the performance and e¢ ciency of Portuguese secondary schools, using the stochastic production frontier analysis. We discuss the impact of school variables and the environment on output (measured by the average national examination scores), as determinants of the shape of technology and degree of e¢ ciency. We …nd, in particular, that teacher senio...