Super Efficiency Evaluations Based on Potential Slack

Super efficiency evaluations are introduced along the lines of the potential improvements approach in Bogetoft and Hougaard (1999). Both a reference selection and a related super efficiency index is defined. The new (potential slack) super efficiency index is compared to a Farrell-based super efficiency index (as in Andersen and Petersen 1993) with respect to convex envelopment technologies.super efficiency, potential slack, reference selection, efficiency index, DEA, Research Methods/ Statistical Methods,

Characterizing the Optimal Composition of Government Expenditures

This paper extends the neoclassical growth model with productive public capital by including an infrastructure efficiency index, which is assumed to depend on a public choice variable, in particular, the share of public spending allocated to productive public consumption. A golden rule for the allocation of public expenditure between productive consumption and investment is specified. Under this framework, the observed path for the stock of infrastructures and the proposed efficiency index in the US economy during the last fifty years have been close to optimal: a lower stock of infrastructures has been accumulated, but it has been used more efficiently.Public Expenditure Composition, Public Investment, Public Consumption, Nominal and Effective Infrastructures, Infrastructures Efficiency Index

A Geometric Measure for the Violation of Utility Maximization

Revealed Preference offers nonparametric tests for whether consumption observations can be rationalized by a utility function. If a consumer is inconsistent with GARP, we might need a measure for the severity of inconsistency. One widely used measure is the Afriat efficiency index (AEI).We propose a new measure based on the extent to which the indifference surfaces intersect the budget hyperplanes. The measure is intuitively appealing and, as a cutoff- rule evaluated by Monte Carlo experiments, performs very well compared to the AEI. The results suggest that the new measure is better suited to capture small deviations from utility maximation.Consumer choice, efficiency index,GARP, nonparametric tests, revealed preference

Rejection sampling in demand systems

We illustrate the method of rejection sampling in a Bayesian application of a new approach toı estimating Demand Systems. This approach, suggested by Varian (1990), is based on a generalization of Afriat's (1967) efficiency index. Rejection sampling is applied to the prior-to-posterior mapping enabling us to obtain posterior results in a nonstandard model

Environmental Efficiency Analysis of Basmati Rice Production in Punjab, Pakistan: Implications for Sustainable Agricultural Development

The intensive use of chemicals worked as a catalyst to shift the production frontier but the most critical factor of maintaining a clean environment was totally ignored. The present study attempts to estimate the environmental efficiency of rice production by employing the translog stochastic production frontier approach. The data are collected from five major Basmati rice growing districts (Gujranwala, Sheikupura, Sialkot, Hafizabad, and Jhang) of Punjab in 2006. Chemical weedicides and nitrogen are treated as environmentally detrimental inputs. The mean technical efficiency index is sufficiently high (89 percent) but the environmental efficiency index of chemical weedicides alone is 14 percent while the joint environmental efficiency index of chemical weedicides and nitrogen is 24 percent implying that joint environmental efficiency is higher than chemical weedicide alone. It indicates that substantial reduction (86 percent) in chemical weedicide use is possible with higher level of productivity. Moreover, it is likely to contribute a considerable decrease in environmental pollution which is expected to enhance the performance of agriculture labour. The reduction in chemical weedicides will save Rs 297 per acre and Rs 1307.3 million over all from the rice crop in Punjab, improving the profitability of rice growing farmers by the same proportion. Empirical analysis indicates that reduction in environmental pollution together with higher level of profitability in rice production is achievable.Rice Production, Environmental Efficiency, Weedicide, Fertiliser (NPK), Stochastic Translog Frontier

Farmers' health status, agricultural efficiency, and poverty in rural Ethiopia: A stochastic production frontier approach

"The A stochastic frontier production function is used to estimate agricultural efficiency index. Then, controlling for household characteristics and other exogenous variables, the efficiency index is regressed on the probability of being sick. Estimation is performed using the treatment effect model where the probability of being sidelined by sickness is modeled as a probit. This framework allows policy simulations that underscore the impact of farmers' health status on both agricultural efficiency and poverty reduction. Overall, regression results confirm the negative impact of health impediment on farmers' agricultural efficiency. Simulation results show that improving farmers' agricultural efficiency by investing in farmers' health may not necessarily lead to poverty reduction. Additional policy instruments may be needed to achieve simultaneous increase in agricultural productivity and reduction in poverty rate." from authors' abstracthealth, Agriculture, productivity, Poverty, Farmers, Efficiency, Stochastic, Production, Science and technology, Institutional change, Innovation,

The Kuznets curve and the effect of international regulations on environmental efficiency

This paper extends the results of series of papers, i.e., Zaim (2004) and Yörük and Zaim (2005a, 2005b). We construct an environmental efficiency index for OECD countries and establish an environmental Kuznets curve relationship between environmental efficiency and income. We then investigate the effect of an international protocol on reducing global emissions on the environmental efficiency.

ESTIMATING COST EFFICIENCY AMONG MAIZE PRODUCERS IN KENYA AND UGANDA

A translog stochastic cost frontier is estimated to calculate cost efficiency index (CEI) of 203 Kenyan and Ugandan maize producers using survey data from 2003. Results show a mean CEI of 1.95, with greater inefficiency among farms in Kenya of medium-large size. Key sources of inefficiency are late planting and use of recycled seed.Farm Management,