Parametric Approach for Estimation of Technical Efficiency
نویسندگان
چکیده
In this paper an attempt is made to explain the basic concept of efficiency, frontier production function, technical efficiency, deterministic frontier, and stochastic frontier. Efficiency of a firm/industry refers to its performance in the utilization of resources at its disposal and is a relative concept. Technical efficiency of a production function is defined as the maximum quantity of output obtainable from given set of inputs. A failure to produce the greatest possible output means the technical decision is in efficient. Technical inefficiency can be obtained by the methods stochastic and deterministic production frontier models. The method discussed in this paper has several possible extension and generalization. Technical efficiency has many policy implications in various functional areas of modern management.
منابع مشابه
Size, Fragmentation, and Inefficiency: A Single-Stage Stochastic Parametric Approach for Wheat Production in Iran
Although studies on the relation between size and efficiency are ample, studies on the relation between size, fragmentation, and efficiency are limited. It is the purpose of this study in which a single-stage stochastic parametric approach is used. For this purpose production of wheat in Iran is a good case because wheat is the core commodity of the Iranian agricultural system which is dominate...
متن کاملStochastic Non-Parametric Frontier Analysis
In this paper we develop an approach that synthesizes the best features of the two main methods in the estimation of production efficiency. Specically, our approach first allows for statistical noise, similar to Stochastic frontier analysis, and second, it allows modeling multiple-inputs-multiple-outputs technologies without imposing parametric assumptions on production relationship, similar to...
متن کاملNon-Parametric Energy Use Efficiency, Energy Ratio and Specific Energy for Irrigated Wheat Crop Production
In this paper, non parametric Data Envelopment Analysis (DEA) was subjected to the energy data of wheat producers in Punjab state, India, and technical, pure technical and scale efficiencies were calculated for farms both category wise and zone wise. The main objective was to determine the strength of the correlation between non-parametric efficiencies and indices such as energy ratio and speci...
متن کاملParametric Estimation in a Recurrent Competing Risks Model
A resource-efficient approach to making inferences about the distributional properties of the failure times in a competing risks setting is presented. Efficiency is gained by observing recurrences of the compet- ing risks over a random monitoring period. The resulting model is called the recurrent competing risks model (RCRM) and is coupled with two repair strategies whenever the system fails. ...
متن کاملData Envelopment Analysis with LINGO Modeling for Technical Educational Group of an Organization
Data Envelopment Analysis (DEA) was developed to help compare the relative performance of decision-making units. It is a non-parametric method for performing frontier analysis. It uses linear programming to estimate the efficiency of multiple decision-making units and it is commonly used in production, management and economics [3]. DEA generates an efficiency score between 0 and 1 for each unit...
متن کاملMeasuring Efficiency of Conventional Life Insurance Companies in Bangladesh and Takaful Life Insurance Companies in Malaysia: A Non-Parametric Approach
This study is conducted to measure the actual efficiency comparison of life insurance company between Bangladesh and Malaysia. Total 15 life insurance companies’ were selected for the study where 10 conventional life insurance companies’ from Bangladesh and 5 Takaful lifeinsurance companies’ from Malaysia. Authors tried toindicate the problems and way to get exact solutions by using Data Envelo...
متن کامل