An Introduction to Efficiency and Productivity Analysis

List of FiguresList of TablesPreface1: INTRODUCTION1.1 Introduction1.2 Some Informal Definitions1.3 Overview of Methods1.4 Outline of Chapters1.5 What is Your Economics Background?2: REVIEW OF PRODUCTION ECONOMICS2.1 Introduction2.2 Production Functions2.3 Transformation Functions2.4 Cost Functions2.5 Revenue Functions2.6 Profit Functions2.7 Conclusions3: PRODUCTIVITY AND EFFICIENCY MEASUREMENT CONCEPTS3.1 Introduction3.2 Set Theoretic Representation of a Production Technology3.3 Output and Input Distance Functions3.4 Efficiency Measurement using Distance, Cost and Revenue Functions3.5 Measuring Productivity and Productivity Change3.6 Conclusions4: INDEX NUMBERS AND PRODUCTIVITY MEASUREMENT4.1 Introduction4.2 Conceptual Framework and Notation4.3 Formulae for Price Index Numbers4.4 Quantity Index Numbers4.5 Properties of Index Numbers: The Test Approach4.6 The Economic-Theoretic Approach4.7 A Simple Numerical Example4.8 Tansitivity in Multilateral Comparisons4.9 TFP Change Measurement Using Index Numbers4.10 Empirical Application: Australian National Railways4.11 Conclusions5: DATA AND MEASUREMENT ISSUES5.1 Introduction5.2 Outputs5.3 Inputs5.4 Prices5.5 Comparisons over time5.6 Output aggregates for sectoral and economy-wide comparisons5.7 Cross-country comparisons of productivity5.8 Data editing and errors5.9 Conclusions6: DATA ENVELOPMENT ANALYSIS6.1 Introduction6.2 The Constant Returns to Scale DEA Model6.3 The Variable Returns to Scale Model and Scale Efficiencies6.4 Input and Output Orientations6.5 Conclusions7: ADDITIONAL TOPICS ON DATA ENVELOPMENT ANALYSTS7.1 Introduction7.2 Price Information and Allocative Efficiency7.3 Non-Discretionary Variables7.4 Adjusting for the Environment7.5 Input Congestion7.6 Treatment of Slacks7.7 Additional Methods7.8 Empirical Application: Australian Universities7.9 Conclusions8: ECONOMETRIC ESTIMATION OF PRODUCTION TECHNOLOGIES8.1 Introduction8.2 Production, Cost and Profit Functions8.3 Single Equation Estimation8.4 Imposing Equality Constraints8.5 Hypothesis Testing8.6 Systems Estimation8.7 Inequality Constraints8.8 The Bayesian Approach8.9 Simulation Methods8.10 Conclusion9: STOCHASTIC FRONTIER ANALYSIS9.1 Introduction9.2 The Stochastic Production Frontier9.3 Estimating the Parameters9.4 Predicting Technical Efficiency9.5 Hypothesis Testing9.6 Conclusions10: ADDITIONAL TOPICS ON STOCHASTIC FRONTIER ANALYSIS10.1 Introduction10.2 Distance Functions10.3 Cost Frontiers10.4 Decomposing Cost Efficiency10.5 Scale Efficiency10.6 Panel Data Models10.7 Accounting for the Production Environment10.8 The Bayesian Approach10.9 Conclusions11: THE CALCULATION AND DECOMPOSITION OF PRODUCTIVITY CHANGE USING FRONTIER METHODS11.1 Introduction11.2 The Malmquist TFP Index and Panel Data11.3 Calculation using DEA Frontiers11.4 Calculation using SFA Frontiers11.5 An Empirical Application11.6 Conclusions12: CONCLUSIONS12.1 Summary of Methods12.2 Relative Merits of the Methods12.3 Some Final PointsAppendix 1: Computer SoftwareAppendix 2: Philippines Rice DataReferencesAuthor IndexSubject Index