This is the only book that provides a comprehensive and unified introduction to the main techniques used in this field: index number methods, data envelopment analysis (DEA) and econometric techniques, including stochastic frontier analysis (SFA)
For each technique the basic methods are carefully described with the aid of numerous diagrams, simple empirical examples and computer output listings. The more advanced aspects of each technique are then discussed after the basic ideas are covered
The DEA section has been updated to cover weights restrictions; super efficiency; bootstrapping; short run cost minimization; and profit maximization
The productivity growth section has been updated to cover the issues of shadow prices and scale effects
In addition, the parametric methods section has been updated to cover scope economies; confidence intervals; testing and imposing regularity conditions; and Bayesian methods
Softcover version of the second edition Hardcover.
Incorporates a new author, Dr. Chris O'Donnell, who brings considerable expertise to the project in the area of performance measurement.
Numerous topics are being added and more applications using real data, as well as exercises at the end of the chapters.
Data sets, computer codes and software will be available for download from the web to accompany the volume.
|The second edition of this book has been written for the same audience as the first edition. It is designed to be a "first port of call" for people wishing to study efficiency and productivity analysis. The book provides an accessible introduction to the four principal methods involved: econometric estimation of average response models; index numbers; data envelopment analysis (DEA); and stochastic firontier analysis (SFA). For each method, we provide a detailed introduction to the basic concepts, give some simple numerical examples, discuss some of the more important extensions to the basic methods, and provide references for further reading. In addition, we provide a number of detailed empirical applications using real-world data. The book can be used as a textbook or as a reference text. As a textbook, it probably contains too much material to cover in a single semester, so most instructors will want to design a course around a subset of chapters. For example, Chapter 2 is devoted to a review of production economics and could probably be skipped in a course for graduate economics majors. However, it should prove useful to undergraduate students and those doing a major in another field, such as business management or health studies.|
This Second Edition of AN INTRODUCTION TO EFFICIENCY AND PRODUCTIVITY ANALYSIS provides a significant revision of the popular First Edition that was published in 1998. The principle elements of the First Edition have been retained. It remains the only book that provides a comprehensive and unified introduction to the main techniques used in this field. Namely, index number methods, data envelopment analysis (DEA) and econometric techniques, including stochastic frontier analysis (SFA). For each technique the basic methods are carefully described with the aid of numerous diagrams, simple empirical examples and computer output listings. Following this the more advanced aspects of each technique are then discussed.
List of Figures List of TablesPreface1: INTRODUCTION 1.1 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 Introduction 2.2 Production Functions2.3 Transformation Functions2.4 Cost Functions2.5 Revenue Functions2.6 Profit Functions 2.7 Conclusions3: PRODUCTIVITY AND EFFICIENCY MEASUREMENT CONCEPTS 3.1 Introduction3.2 Set Theoretic Representation of a Production Technology 3.3 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 Introduction 4.2 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 Conclusions 5: 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 ANALYSTS 7.1 Introduction7.2 Price Information and Allocative Efficiency 7.3 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 Testing 9.6 Conclusions 10: ADDITIONAL TOPICS ON STOCHASTIC FRONTIER ANALYSIS10.1 Introduction10.2 Distance Functions10.3 Cost Frontiers10.4 Decomposing Cost Efficiency10.5 Scale Efficiency 10.6 Panel Data Models 10.7 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 Software Appendix 2: Philippines Rice DataReferences Author Index Subject Index
From the reviews of the second edition:
"The authors introduce the four major methods economists use to analyze efficiency and productivity: econometric estimation of average response, index numbers, data envelopment analysis (DEA), and stochastic frontier analysis. They intend the book primarily as a text for students in economics and also for students in other disciplines, such as business administration. ... On the whole, I rate the book as excellent ... ." (Jamshed A. Modi, Interfaces, Vol. 37 (2), 2007)
Softcover version of the second edition Hardcover. Incorporates a new author, Dr. Chris O'Donnell, who brings considerable expertise to the project in the area of performance measurement. Data sets, computer codes and software will be available for download from the web to accompany the volume.
Review of Production Economics.- Productivity and Efficiency Measurement Concepts.- Index Numbers and Productivity Measurement.- Data and Measurement Issues.- Data Envelopment Analysis.- Additional Topics on Data Envelopment Analysis.- Econometric Estimation of Production Technologies.- Stochastic Frontier Analysis.- Additional Topics on Stochastic Frontier Analysis.- The Calculation and Decomposition of Productivity Change Using Frontier Methods.- Conclusions.
From the reviews of the second edition:
"The authors introduce the four major methods economists use to analyze efficiency and productivity: econometric estimation of average response, index numbers, data envelopment analysis (DEA), and stochastic frontier analysis. They intend the book primarily as a text for students in economics and also for students in other disciplines, such as business administration. ... On the whole, I rate the book as excellent ... ." (Jamshed A. Modi, Interfaces, Vol. 37 (2), 2007)
Inhaltsverzeichnis
Review of Production Economics.- Productivity and Efficiency Measurement Concepts.- Index Numbers and Productivity Measurement.- Data and Measurement Issues.- Data Envelopment Analysis.- Additional Topics on Data Envelopment Analysis.- Econometric Estimation of Production Technologies.- Stochastic Frontier Analysis.- Additional Topics on Stochastic Frontier Analysis.- The Calculation and Decomposition of Productivity Change Using Frontier Methods.- Conclusions.
Klappentext
The second edition of this book has been written for the same audience as the first edition. It is designed to be a "first port of call" for people wishing to study efficiency and productivity analysis. The book provides an accessible introduction to the four principal methods involved: econometric estimation of average response models; index numbers; data envelopment analysis (DEA); and stochastic firontier analysis (SFA). For each method, we provide a detailed introduction to the basic concepts, give some simple numerical examples, discuss some of the more important extensions to the basic methods, and provide references for further reading. In addition, we provide a number of detailed empirical applications using real-world data. The book can be used as a textbook or as a reference text. As a textbook, it probably contains too much material to cover in a single semester, so most instructors will want to design a course around a subset of chapters. For example, Chapter 2 is devoted to a review of production economics and could probably be skipped in a course for graduate economics majors. However, it should prove useful to undergraduate students and those doing a major in another field, such as business management or health studies.
This Second Edition of AN INTRODUCTION TO EFFICIENCY AND PRODUCTIVITY ANALYSIS provides a significant revision of the popular First Edition that was published in 1998. The principle elements of the First Edition have been retained. It remains the only book that provides a comprehensive and unified introduction to the main techniques used in this field. Namely, index number methods, data envelopment analysis (DEA) and econometric techniques, including stochastic frontier analysis (SFA). For each technique the basic methods are carefully described with the aid of numerous diagrams, simple empirical examples and computer output listings. Following this the more advanced aspects of each technique are then discussed.
