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...

A subjective well-being approach is followed to assess the magnitude of inefficiency in the use of income. The information comes from a Mexican survey and an X-inefficiency technique is used. The paper shows that there exists substantial inefficiency in the use of income at all income levels, even for those in income poverty. It is shown that inefficiency is significantly related to practices, ...

This study extends the generalized true random-effects model to account for spatial dependence in persistent and transient inefficiency. For this purpose, a with spatially autocorrelated inefficiency components is specified. Additionally, also modeled noise component uncontrolled correlations. The proposed applied panel dataset of Wisconsin dairy farms observed between 2009 2017 estimated using...

An attractive feature of competitive markets is that they maximize the sum of consumer and producer surplus. Producer and consumer surplus are shown in the market supply and market demand diagram in Figure 7-4. Recall that the producer surplus for all producers is the area above the supply curve and below the market price line, and that the consumer surplus for all consumers is the area below t...

The electricity reform in Colombia has exhibited gains in terms of reliability but its effects on firms efficiency and service quality have not been clear. Previous studies evaluating the performance of distribution companies after the reform have not found evidence of improvements, although large differences in efficiency have been found among firms. This suggests high inefficiency persistence...

This paper estimates dynamic efficiency in the Spanish construction industry before and during the current financial crisis over the period 2001-2009. Static efficiency measures are biased in a context of a significant economic crisis with large investments and disinvestments as they do not account for costs in the adjustment of quasi-fixed factors. The results show that overall dynamic cost in...

This study demarcates costinefficiency in Chinese banks into X-inefficiency and rent-seekinginefficiency. A protected banking market not only encourages weak management and X-inefficiency but also public ownership and state directed lending encourages moral hazard and bureaucratic rent seeking. This paper uses bootstrap non-parametric techniques to estimate measures of X-inefficiency and rent-s...

The price of anarchy [16] is by now a standard measure for quantifying the inefficiency introduced in games due to selfish behavior, and is defined as the ratio between the optimal outcome and the worst Nash equilibrium. However, this notion is well defined only for games that always possess a Nash equilibrium (NE). We propose the dynamic inefficiency measure, which is roughly defined as the av...

The existing Chinese banking system was born out of a state-planning framework focussed on the funding of state-owned enterprises. Despite the development of a modern banking system, numerous studies of Chinese banking point to its high level of average inefficiency. Much of this inefficiency relates to the high level of non-performing loans held on the banks books. This study argues that a sig...

This study empirically examines the association between hospital inefficiency and the decision to introduce electronic medical records (EMR) and computerized physician order entry (CPOE) in a national sample of U.S. general hospitals in urban areas in 2006. The main research question is whether the presence of hospital cost inefficiency or other factors driving inefficiency in the production pr...