Rights statement: This is the author’s version of a work that was accepted for publication in European Journal of Operational Research. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in European Journal of Oerational Research, 249, 2, 2016 DOI: 10.1016/j.ejor.2015.10.036
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Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
}
TY - JOUR
T1 - Notes on technical efficiency estimation with multiple inputs and outputs
AU - Tsionas, Efthymios
N1 - This is the author’s version of a work that was accepted for publication in European Journal of Operational Research. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in European Journal of Oerational Research, 249, 2, 2016 DOI: 10.1016/j.ejor.2015.10.036
PY - 2016/3/1
Y1 - 2016/3/1
N2 - Collier, Johnson and Ruggiero (2011) deal with the problem of estimating technical efficiency using regression analysis that allows multiple inputs and outputs. This revives an old problem in the analysis of production. In this note we provide an alternative maximum likelihood estimator that addresses the concerns. A Monte Carlo experiment shows that the technique works well in practice. A test for homotheticity, a critical assumption in Collier, Johnson and Ruggiero (2011) is constructed and its behavior is examined using Monte Carlo simulation and an empirical application to European banking.
AB - Collier, Johnson and Ruggiero (2011) deal with the problem of estimating technical efficiency using regression analysis that allows multiple inputs and outputs. This revives an old problem in the analysis of production. In this note we provide an alternative maximum likelihood estimator that addresses the concerns. A Monte Carlo experiment shows that the technique works well in practice. A test for homotheticity, a critical assumption in Collier, Johnson and Ruggiero (2011) is constructed and its behavior is examined using Monte Carlo simulation and an empirical application to European banking.
KW - Efficiency
KW - Least squares
KW - Multiple-output production
KW - Limited information maximum Likelihood
U2 - 10.1016/j.ejor.2015.10.036
DO - 10.1016/j.ejor.2015.10.036
M3 - Journal article
VL - 249
SP - 784
EP - 788
JO - European Journal of Operational Research
JF - European Journal of Operational Research
SN - 0377-2217
IS - 2
ER -