Economic efficiency analysis has received considerable worldwide attention in the last few decades, with Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis (DEA) establishing themselves as the two dominant approaches in the literature. This book, by combining cutting-edge theoretical research on DEA and SFA with attractive real-world applications, offers a valuable asset for professors, students, researchers, and professionals working in all branches of economic efficiency analysis, as well as those concerned with the corresponding economic policies.
The book is divided into three parts, the first of which is devoted to basic concepts, making the content self-contained. The second is devoted to DEA, and the third to SFA. The topics covered in Part 2 range from stochastic DEA to multidirectional dynamic inefficiency analysis, including directional distance functions, the elimination and choice translating algorithm, benefit-of-the-doubt composite indicators, and internal benchmarking for efficiency evaluations. Part 3 also includes exciting and cutting-edge theoretical research on e.g. robustness, nonparametric stochastic frontier models, hierarchical panel data models, and estimation methods like corrected ordinary least squares and maximum entropy.
Author(s): Pedro Macedo, Victor Moutinho, Mara Madaleno
Series: Lecture Notes in Economics and Mathematical Systems, 692
Publisher: Springer
Year: 2023
Language: English
Pages: 266
City: Cham
Preface
Contents
Contributors
Introduction
1 General Insights and Concepts
2 The Book Chapters and Contents
2.1 Part 1
2.2 Part 2
2.3 Part 3
3 Concluding Remarks
References
Part 1
Production Economics and Economic Efficiency
References
Data Envelopment Analysis: A Review and Synthesis
1 Introduction
2 The Origin of Frontier Methods
3 The Original DEA Model
4 The Evolution of the DEA Methodology
5 DEA Applications Roadmap
6 Opportunities for Future Developments in DEA
References
Stochastic Frontier Analysis: A Review and Synthesis
1 Introduction
2 Stochastic Frontier Analysis (SFA)
2.1 The SFA Method
2.2 SFA Approach in EE
3 Applications of SFA in EE Assessment
4 Policy Recommendations and Possible Future Research Applications of SFA
5 Concluding Remarks
References
Part 2
Combining Directional Distances and ELECTRE Multicriteria Decision Analysis for Preferable Assessments of Efficiency
1 Introduction
2 Using ELECTRE Outranking to Set a “Preferable Direction”
3 Numerical Example
4 Conclusions
References
Benefit-of-the-Doubt Composite Indicators and Use of Weight Restrictions
1 Introduction
2 BoD Composite Indicators Based on DEA Models
3 BoD Composite Indicators Based on Directional Distance Functions
4 Incorporating Value Judgments in BoD Composite indicators
4.1 Restrictions to Virtual Weights in CIs
4.2 Direct Weight Restrictions in CIs
5 Graphical Interpretation of a Directional BoD Model
5.1 Directional BoD Model with Virtual Weight Restrictions
5.2 Directional BoD Model with ARI Restrictions
6 Conclusions
References
Multidirectional Dynamic Inefficiency Analysis: An Extension to Include Corporate Social Responsibility
1 Introduction
2 Dynamic Multidirectional Inefficiency Analysis with CSR Incorporated
3 Dataset
4 Results
5 Conclusions
References
Stochastic DEA
1 Introduction
2 Stochastic DEA
3 Distributional Assumptions on ε
4 Measuring Technical Efficiency
5 Conclusions
References
Internal Benchmarking for Efficiency Evaluations Using Data Envelopment Analysis: A Review of Applications and Directions for Future Research
1 Introduction
2 Methodological Procedure
3 Results
4 Internal Longitudinal Benchmarking: An Empirical Application
5 Discussion
6 Conclusions
References
Part 3
Recent Advances in the Construction of Nonparametric Stochastic Frontier Models
1 Introduction
2 Identification
3 Estimation
3.1 Full Separability
3.2 Weak Separability
3.3 No Separability
4 Concluding Remarks
References
A Hierarchical Panel Data Model for the Estimation of Stochastic Metafrontiers: Computational Issues and an Empirical Application
1 Introduction
2 The Model and Its Estimation
3 Computational Issues
4 Empirical Application
4.1 Estimation
5 Conclusions
References
Robustness in Stochastic Frontier Analysis
1 Introduction
2 The Stochastic Frontier Model
3 Definitions and Measures of Robustness
3.1 The Influence Function
3.2 Breakdown Point
3.3 Summary of Measures
4 Robustness and Stochastic Frontier Estimation
4.1 Corrected Ordinary Least Squares
4.2 Quantile Regression
4.3 Maximum Likelihood Estimation
4.4 Alternative M-estimators
5 Robustness and Efficiency Prediction
5.1 Conditional Mean
5.2 Conditional Mode
5.3 Conditional Median
6 Summary and Conclusions
References
Is it MOLS or COLS?
1 Introduction
2 The Methods
2.1 Method A
2.2 Method B
2.3 What These Methods Aim to Do
3 History of the Nomenclature
3.1 Prior to 1980
3.2 1980
3.3 After 1980
4 The Gabrielsen Dilemma
5 Textbook Treatment of the Acronyms
6 Use of the Acronyms in the Journal of Productivity Analysis
7 Who Cares?
8 The ``Final'' Verdict
9 COLS in the JPA
10 MOLS in the JPA
11 A Collection of COLS Results
References
Stochastic Frontier Analysis with Maximum Entropy Estimation
1 Introduction
2 Maximum Entropy Estimation
2.1 Generalized Maximum (Cross) Entropy Estimator
2.2 ME Estimation in SFA
3 An Application to Eco-Efficiency Analysis of European Countries
4 Concluding Remarks
References
