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Technical Inefficiency (technical + inefficiency)
Selected AbstractsAGGLOMERATION EXTERNALITIES, PRODUCTIVITY, AND TECHNICAL INEFFICIENCY,JOURNAL OF REGIONAL SCIENCE, Issue 4 2006Ragnar Tveteras ABSTRACT Agglomeration externalities can have positive effects on both the production possibility frontier and technical inefficiency of firms. Increased levels of localized knowledge spillovers and substitution of internal inputs with external inputs may lead to fewer errors in decision-making and execution of production tasks, thus causing firms to become technically more efficient relative to the production frontier. When we estimate a stochastic frontier production model on a large panel of salmon aquaculture farms, we find econometric support for positive agglomeration externalities on both the production frontier and technical inefficiency. [source] Technical Inefficiency and Production Risk in Rice Farming: Evidence from Central Luzon Philippines,ASIAN ECONOMIC JOURNAL, Issue 1 2006Renato Villano Q12; C13 There have been many previous studies of technical inefficiency in rice production in the Philippines, but none has focused simultaneously on production risk and technical inefficiency at the farm level. Rice production is inherently risky because of the heterogeneous production environment. In this study, we analyze technical inefficiency in a rainfed lowland rice environment in Central Luzon using a stochastic frontier production function with a heteroskedastic error structure. An 8-year panel dataset collected from 46 rainfed rice farmers was used to estimate flexible functional specifications. Over the whole period, the average technical efficiency was found to be 79 percent. Results indicate that there is a high degree of variability in technical efficiency estimates, which can be attributed to the instability of farming conditions in the rainfed lowland environment. Mean output was signifificantly influenced by area planted to rice, labor and the amount of fertilizer used. Consequently, these inputs were found to be risk-increasing, whereas herbicide was found to be a risk-reducing input. [source] Measuring the productive efficiency and clinical quality of institutional long-term care for the elderlyHEALTH ECONOMICS, Issue 3 2005Juha Laine Abstract The authors consider the association between productive efficiency and clinical quality in institutional long-term care for the elderly. Cross-sectional data were collected from 122 wards in health-centre hospitals and residential homes in Finland in 2001. Productive efficiency was measured in terms of technical efficiency, which was defined as the unit's distance from the (best practice) production frontier. The analysis employed stochastic production frontier estimation, where technical inefficiency in the production function was specified to be a function of ward characteristics and clinical quality of care. Several quality indicators based on the Resident Assessment Instrument, such as prevalence of pressure ulcers and depression with no treatment, were used in the analysis. The results did not reveal systematic association between technical efficiency and clinical quality of care. However, the prevalence of pressure ulcers, indicating poor quality of care was associated with technical efficiency, a fact which highlights the importance of including quality measures in the assessment of efficiency in long-term care. Copyright © 2004 John Wiley & Sons, Ltd. [source] AGGLOMERATION EXTERNALITIES, PRODUCTIVITY, AND TECHNICAL INEFFICIENCY,JOURNAL OF REGIONAL SCIENCE, Issue 4 2006Ragnar Tveteras ABSTRACT Agglomeration externalities can have positive effects on both the production possibility frontier and technical inefficiency of firms. Increased levels of localized knowledge spillovers and substitution of internal inputs with external inputs may lead to fewer errors in decision-making and execution of production tasks, thus causing firms to become technically more efficient relative to the production frontier. When we estimate a stochastic frontier production model on a large panel of salmon aquaculture farms, we find econometric support for positive agglomeration externalities on both the production frontier and technical inefficiency. [source] A Recursive Thick Frontier Approach to Estimating Production Efficiency,OXFORD BULLETIN OF ECONOMICS & STATISTICS, Issue 2 2006Rien J. L. M. Wagenvoort Abstract We introduce a new panel data estimation technique for production and cost functions, the recursive thick frontier approach (RTFA). RTFA has two advantages over existing econometric frontier methods. First, technical inefficiency is allowed to be dependent on the explanatory variables of the frontier model. Secondly, RTFA does not hinge on distributional assumptions on the inefficiency component of the error term. We show by means of simulation experiments that RTFA outperforms the popular stochastic frontier approach and the ,within' ordinary least squares estimator for realistic parameterizations of a productivity model. Although RTFAs formal statistical properties are unknown, we argue, based on these simulation experiments, that RTFA is a useful complement to existing methods. [source] Technical Inefficiency and Production Risk in Rice Farming: Evidence from Central Luzon Philippines,ASIAN ECONOMIC JOURNAL, Issue 1 2006Renato Villano Q12; C13 There have been many previous studies of technical inefficiency in rice production in the Philippines, but none has focused simultaneously on production risk and technical inefficiency at the farm level. Rice production is inherently risky because of the heterogeneous production environment. In this study, we analyze technical inefficiency in a rainfed lowland rice environment in Central Luzon using a stochastic frontier production function with a heteroskedastic error structure. An 8-year panel dataset collected from 46 rainfed rice farmers was used to estimate flexible functional specifications. Over the whole period, the average technical efficiency was found to be 79 percent. Results indicate that there is a high degree of variability in technical efficiency estimates, which can be attributed to the instability of farming conditions in the rainfed lowland environment. Mean output was signifificantly influenced by area planted to rice, labor and the amount of fertilizer used. Consequently, these inputs were found to be risk-increasing, whereas herbicide was found to be a risk-reducing input. [source] | ||||||||||