An introduction to efficiency and productivity analysis

Title:

Edition:

2nd ed.

Publication Information:

New York, NY : Springer, 2005

ISBN:

9780387242651

Subject Term:

Production (Economic theory)

Production functions (Economic theory)

Industrial productivity

Added Author:

Coelli, Tim

Available:*

Library	Item Barcode	Call Number	Material Type	Item Category 1	Status
Searching... PSZ JB	30000010121390	HB241 I57 2005	Open Access Book	Book	Searching... Unknown

The second edition of this book has been written for the same audience as the first edition. It is designed to be a "first port of call" for people wishing to study efficiency and productivity analysis. The book provides an accessible introduction to the four principal methods involved: econometric estimation of average response models; index numbers; data envelopment analysis (DEA); and stochastic firontier analysis (SFA). For each method, we provide a detailed introduction to the basic concepts, give some simple numerical examples, discuss some of the more important extensions to the basic methods, and provide references for further reading. In addition, we provide a number of detailed empirical applications using real-world data. The book can be used as a textbook or as a reference text. As a textbook, it probably contains too much material to cover in a single semester, so most instructors will want to design a course around a subset of chapters. For example, Chapter 2 is devoted to a review of production economics and could probably be skipped in a course for graduate economics majors. However, it should prove useful to undergraduate students and those doing a major in another field, such as business management or health studies.

List of Figures	p. xi
List of Tables	p. xiii
Preface	p. xv
1 Introduction	p. 1
1.1 Introduction	p. 1
1.2 Some Informal Definitions	p. 2
1.3 Overview of Methods	p. 6
1.4 Outline of Chapters	p. 7
1.5 What is Your Economics Background?	p. 9
2 Review of Production Economics	p. 11
2.1 Introduction	p. 11
2.2 Production Functions	p. 12
2.3 Transformation Functions	p. 20
2.4 Cost Functions	p. 21
2.5 Revenue Functions	p. 31
2.6 Profit Functions	p. 32
2.7 Conclusions	p. 40
3 Productivity and Efficiency Measurement Concepts	p. 41
3.1 Introduction	p. 41
3.2 Set Theoretic Representation of a Production Technology	p. 42
3.3 Output and Input Distance Functions	p. 47
3.4 Efficiency Measurement using Distance, Cost and Revenue Functions	p. 51
3.5 Measuring Productivity and Productivity Change	p. 61
3.6 Conclusions	p. 81
4 Index Numbers and Productivity Measurement	p. 85
4.1 Introduction	p. 85
4.2 Conceptual Framework and Notation	p. 86
4.3 Formulae for Price Index Numbers	p. 88
4.4 Quantity Index Numbers	p. 90
4.5 Properties of Index Numbers: The Test Approach	p. 95
4.6 The Economic-Theoretic Approach	p. 98
4.7 A Simple Numerical Example	p. 113
4.8 Transitivity in Multilateral Comparisons	p. 116
4.9 TFP Change Measurement Using Index Numbers	p. 118
4.10 Empirical Application: Australian National Railways	p. 127
4.11 Conclusions	p. 131
5 Data and Measurement Issues	p. 133
5.1 Introduction	p. 133
5.2 Outputs	p. 135
5.3 Inputs	p. 141
5.4 Prices	p. 153
5.5 Comparisons over time	p. 154
5.6 Output aggregates for sectoral and economy-wide comparisons	p. 156
5.7 Cross-country comparisons of productivity	p. 157
5.8 Data editing and errors	p. 159
5.9 Conclusions	p. 160
6 Data Envelopment Analysis	p. 161
6.1 Introduction	p. 161
6.2 The Constant Returns to Scale DEA Model	p. 162
6.3 The Variable Returns to Scale Model and Scale Efficiencies	p. 172
6.4 Input and Output Orientations	p. 180
6.5 Conclusions	p. 181
7 Additional Topics on Data Envelopment Analysis	p. 183
7.1 Introduction	p. 183
7.2 Price Information and Allocative Efficiency	p. 183
7.3 Non-Discretionary Variables	p. 188
7.4 Adjusting for the Environment	p. 190
7.5 Input Congestion	p. 195
7.6 Treatment of Slacks	p. 198
7.7 Additional Methods	p. 199
7.8 Empirical Application: Australian Universities	p. 203
7.9 Conclusions	p. 206
8 Econometric Estimation of Production Technologies	p. 209
8.1 Introduction	p. 209
8.2 Production, Cost and Profit Functions	p. 210
8.3 Single Equation Estimation	p. 214
8.4 Imposing Equality Constraints	p. 220
8.5 Hypothesis Testing	p. 223
8.6 Systems Estimation	p. 225
8.7 Inequality Constraints	p. 227
8.8 The Bayesian Approach	p. 231
8.9 Simulation Methods	p. 234
8.10 Conclusion	p. 239
9 Stochastic Frontier Analysis	p. 241
9.1 Introduction	p. 241
9.2 The Stochastic Production Frontier	p. 242
9.3 Estimating the Parameters	p. 245
9.4 Predicting Technical Efficiency	p. 254
9.5 Hypothesis Testing	p. 258
9.6 Conclusions	p. 261
10 Additional Topics on Stochastic Frontier Analysis	p. 263
10.1 Introduction	p. 263
10.2 Distance Functions	p. 264
10.3 Cost Frontiers	p. 266
10.4 Decomposing Cost Efficiency	p. 269
10.5 Scale Efficiency	p. 272
10.6 Panel Data Models	p. 275
10.7 Accounting for the Production Environment	p. 281
10.8 The Bayesian Approach	p. 284
10.9 Conclusions	p. 288
11 The Calculation and Decomposition of Productivity Change Using Frontier Methods	p. 289
11.1 Introduction	p. 289
11.2 The Malmquist TFP Index and Panel Data	p. 291
11.3 Calculation using DEA Frontiers	p. 294
11.4 Calculation using SFA Frontiers	p. 300
11.5 An Empirical Application	p. 302
11.6 Conclusions	p. 310
12 Conclusions	p. 311
12.1 Summary of Methods	p. 311
12.2 Relative Merits of the Methods	p. 312
12.3 Some Final Points	p. 313
Appendix 1 Computer Software	p. 317
Appendix 2 Philippines Rice Data	p. 325
References	p. 327
Author Index	p. 341
Subject Index	p. 345

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