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dc.contributor.author
Filippini, Massimo
dc.contributor.author
Greene, William
dc.date.accessioned
2019-04-24T13:21:57Z
dc.date.available
2019-04-24T12:55:43Z
dc.date.available
2019-04-24T13:21:57Z
dc.date.issued
2014-05
dc.identifier.uri
http://hdl.handle.net/20.500.11850/339318
dc.identifier.doi
10.3929/ethz-a-010151789
dc.description.abstract
The productive efficiency of a firm can be seen as composed of two parts, one persistent and one transient. The received empirical literature on the measurement of productive efficiency has paid relatively little attention to the difference between these two components. Ahn, Good and Sickles (2000) suggested some approaches that pointed in this direction. The possibility was also raised in Greene (2004), who expressed some pessimism over the possibility of distinguishing the two empirically. Recently, Colombi (2010) and Kumbhakar and Tsionas (2012), in a milestone extension of the stochastic frontier methodology have proposed a tractable model based on panel data the promises to provide separate estimates of the two components of efficiency. The approach developed in the original presentation proved very cumbersome actually to implement in practice. Colombi (2010) notes that FIML estimation of the model is ‘complex and time consuming.’ In the sequence of papers, Colombi (2010), Colombi et al. (2011, 2014), Kumbhakar, Lien and Hardaker (2012) and Kumbhakar and Tsionas (2012) have suggested other strategies, including a four step least squares method. The main point of this paper is that full maximum likelihood estimation of the model is neither complex nor time consuming. The extreme complexity of the log likelihood noted in Colombi (2010), Colombi et al. (2011, 2014) is reduced by using simulation and exploiting the Butler and Moffitt (1982) formulation. In this paper, we develop a practical full information maximum simulated likelihood estimator for the model. The approach is very effective and strikingly simple to apply, and uses all of the sample distributional information to obtain the estimates. We also implement the panel data counterpart of the JLMS (1982) estimator for technical or cost inefficiency. The technique is applied in a study of the cost efficiency of Swiss railways.
en_US
dc.format
application/pdf
en_US
dc.language.iso
en
en_US
dc.publisher
ETH Zurich, Center of Economic Research (CER-ETH)
en_US
dc.rights.uri
http://rightsstatements.org/page/InC-NC/1.0/
dc.subject
Productive efficiency
en_US
dc.subject
Stochastic frontier analysis
en_US
dc.subject
Panel data
en_US
dc.subject
Transient and persistent efficiency
en_US
dc.title
Persistent and transient productive inefficiency: a maximum simulated likelihood approach
en_US
dc.type
Working Paper
dc.rights.license
In Copyright - Non-Commercial Use Permitted
ethz.journal.title
Economics Working Paper Series
ethz.journal.volume
14
en_US
ethz.journal.issue
197
en_US
ethz.size
24 p.
en_US
ethz.code.ddc
DDC - DDC::3 - Social sciences::330 - Economics
en_US
ethz.code.ddc
DDC - DDC::5 - Science::510 - Mathematics
en_US
ethz.code.jel
JEL - JEL::C - Mathematical and Quantitative Methods::C1 - Econometric and Statistical Methods and Methodology: General
en_US
ethz.code.jel
JEL - JEL::C - Mathematical and Quantitative Methods::C2 - Single Equation Models; Single Variables::C23 - Panel Data Models; Spatio-temporal Models
en_US
ethz.code.jel
JEL - JEL::D - Microeconomics::D2 - Production and Organizations
en_US
ethz.code.jel
JEL - JEL::D - Microeconomics::D2 - Production and Organizations::D24 - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
en_US
ethz.publication.place
Zurich
en_US
ethz.publication.status
published
en_US
ethz.leitzahl
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::03539 - Filippini, Massimo / Filippini, Massimo
en_US
ethz.leitzahl
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02045 - Dep. Geistes-, Sozial- u. Staatswiss. / Dep. of Humanities, Social and Pol.Sc.
en_US
ethz.leitzahl.certified
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::03539 - Filippini, Massimo / Filippini, Massimo
ethz.relation.isPreviousVersionOf
20.500.11850/114220
ethz.date.deposited
2017-06-11T13:55:41Z
ethz.source
ECIT
ethz.source
ECOL
ethz.identifier.importid
imp5936528de62d459579
ethz.identifier.importid
imp59366b5c07fd382425
ethz.ecolpid
eth:8618
ethz.ecitpid
pub:145938
ethz.eth
yes
en_US
ethz.availability
Open access
en_US
ethz.rosetta.installDate
2019-04-24T12:56:16Z
ethz.rosetta.lastUpdated
2020-02-15T18:34:06Z
ethz.rosetta.versionExported
true
dc.identifier.olduri
http://hdl.handle.net/20.500.11850/92794
dc.identifier.olduri
http://hdl.handle.net/20.500.11850/154564
ethz.COinS
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