Profit, Directional Distance Functions, and Nerlovian Efficiency

Chambers, Robert G.; Chung, Yangho; Färe, Rolf

doi:10.1023/a:1022637501082

Cited by 1,011 publications

(594 citation statements)

References 12 publications

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“…Regional differences in farm performance are a common finding (Barnes et al 2011, European Commission 2011, Galanopoulos et al 2006, Hadley 2006, Kumbhakar and Lien 2010, McCloud and Kumbhakar 2008, Sipiläinen et al 2008, Wang et al 2012. For Swedish farms specialising in beef production, differences in farm economic performance arising from differing regional and agro-environmental potential have been found to be relatively well compensated by the subsidy support provided for the period 1998). Hansson and Ferguson (2011) suggest that stronger interest in development of farming activities can be expected in farms located far away from urban centres, where there is less competition for land, fewer opportunities for alternative employment and less concern about hygiene issues such as farm odours and noise.…”

Section: Regional Factor Endowmentsmentioning

confidence: 99%

“…Therefore, the input distance function definition suggests the degree to which the inputs used exceed the input requirement for an observed production enterprise, which is identified as a cost, or inefficiency (Greene 2008). Generalization of Shepard's radial form of the input distance functions has been done by Chambers et al (1996Chambers et al ( , 1998 through the introduction of a directional input distance function (DIDF). The DIDF measures the amount that one can translate an input vector radially from itself to the technology frontier in a reassigned direction, assuming that the translation is allowed towards all of the points on the frontier that dominate the observed decision-making unit (Färe et al 2008).…”

Section: Measuring Resource Use Efficiency In Beef Productionmentioning

confidence: 99%

“…The DIDF measures the amount that one can translate an input vector radially from itself to the technology frontier in a reassigned direction, assuming that the translation is allowed towards all of the points on the frontier that dominate the observed decision-making unit (Färe et al 2008). Cheng and Qian (2010) and Cheng and Zervopoulos (2012) further generalized the form of the distance function defined by Chambers et al (1998) by applying the assumption that the changes in the proportions of inputs and output are not necessarily equal.…”

Section: Measuring Resource Use Efficiency In Beef Productionmentioning

confidence: 99%

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Input saving possibilities and practices contributing to more efficient beef production in Sweden

Manevska‐Tasevska

Hansson

Rabinowicz

2014

AFSci

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This study estimated the possibilities of reducing costs and improving input use in a sample of Swedish farms specialising in beef production. Input use efficiency was measured in a multi-output, multi-input distance function analysis, covering the period 2008-2011. For comparison, both the classical radial and the generalised non-parametric approach were used. The results revealed that on average, costs could be decreased by 20%. Both models constructed frontiers where: i) the rankings of farms according to efficiency were positively and highly correlated and ii) the size and the significance of the parameter estimates were similar. Input-saving technologies were found to be positively influenced by livestock density, pasture availability and the use of coupled income support. Larger farms, farms with higher specialisation in beef cattle, farms with a larger number of animals older than 2 years, farms converting to organic production, farms located in less favoured areas and farms located in regions with a shorter grazing period were found be less efficient.

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Section: Regional Factor Endowmentsmentioning

confidence: 99%

Section: Measuring Resource Use Efficiency In Beef Productionmentioning

confidence: 99%

Section: Measuring Resource Use Efficiency In Beef Productionmentioning

confidence: 99%

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Input saving possibilities and practices contributing to more efficient beef production in Sweden

Manevska‐Tasevska

Hansson

Rabinowicz

2014

AFSci

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“…See also Simar (2003) for a related discussion. 6 As a final note, because it can well be that (x E , y E ) / ∈ D r,m E , we may have e θ r,m E < 0 and thus also e θ m E < 0. We label such observations as 'super-efficient'.…”

Section: Outlier-robust Inefficiency Measurementioning

confidence: 95%

Equity and Efficiency in Private and Public Education: A Nonparametric Comparison

et al. 2007

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We present a nonparametric approach for (1) efficiency and (2) equity evaluation in education. Firstly, we use a nonparametric (Data Envelopment Analysis) model that is specially tailored to assess educational efficiency at the pupil level. The model accounts for the fact that typically minimal prior structure is available for the behavior (objectives and feasibility set) under evaluation. It allows for uncertainty in the data, while it corrects for exogenous 'environmental' characteristics that are specific to each pupil.Secondly, we propose two multidimensional stochastic dominance criteria as naturally complementary aggregation criteria for comparing the performance of different school types (private and public schools); these criteria are specifically designed for aggregating * We would like to thank Jan Van Damme for his permission to use the SiBO-data, Frederik Maes and Peter Helsen for their very useful help with the data, and the educational department of the Flemish government for the provision of some supplementary data. In addition, we want to thank Bart Capéau, André Decoster, Erik Schokkaert, Gary Simpson, Wim Moesen, Emmanuel Thanassoulis and other seminar participants in Edinburgh, Aston and Leuven University for insightful discussions.† Centre for Economic Studies, University of Leuven (KU Leuven), Naamsestraat 69, 3000 Leuven, Belgium; post-doctoral Fellow of the Fund for Scientific Research -Flanders; E-mail to Laurens.Cherchye@kuleuven-kortrijk.be.‡ Centre for Economic Studies, University of Leuven (KU Leuven), Naamsestraat 69, 3000 Leuven, Belgium; Email to Kristof.Dewitte@econ.kuleuven.be.§ European University College, Stormstraat 2, 1000 Brussels, Belgium, and Centre for Economic Studies, University of Leuven (KU Leuven), Naamsestraat 69, 3000 Leuven, Belgium; E-mail to Erwin.Ooghe@econ.kuleuven.be.¶ Higher Institute of Labour Studies, University of Leuven (KU Leuven), Parkstraat 47, 3000 Leuven, Belgium; Email to Ides.Nicaise@hiva.kuleuven.be. 1 pupils' output performance while adjusting for environment-corrected inefficiency. While the first criterion only accounts for efficiency, the second criterion also takes equity into consideration. The model is applied for comparing private (but publicly funded) and public primary schools in Flanders. Our application finds that no school type robustly dominates another type when controlling for the school environment and taking equity into account. More generally, it demonstrates the usefulness of our nonparametric approach, which includes environmental and equity considerations, for obtaining 'fair' performance comparisons in the public sector context.

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“…generates two special cases of Luenberger's shortage function, which Chambers et al (1996Chambers et al ( , 1998 refer to as directional input and output distance functions, respectively. Programs 1 and 2 can indirectly be obtained as 6 Chambers et al (1998) prove that there is a dual relationship between the profit function and the directional distance function.…”

Section: Radial Dea Programs and Directional Distance Function Programsmentioning

confidence: 99%

Families of linear efficiency programs based on Debreu’s loss function

2011

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Gerard Debreu introduced a well known radial efficiency measure which he called a "coefficient of resource utilization." He derived this scalar from a much less well known "dead loss" function that characterizes the monetary value sacrificed to inefficiency, and which is to be minimized subject to a normalization condition. We use Debreu's loss function, together with a variety of normalization conditions, to generate several popular families of linear efficiency programs. Our methodology also can be employed to generate entirely new families of linear efficiency programs.

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Profit, Directional Distance Functions, and Nerlovian Efficiency

Cited by 1,011 publications

References 12 publications

Input saving possibilities and practices contributing to more efficient beef production in Sweden

Input saving possibilities and practices contributing to more efficient beef production in Sweden

Equity and Efficiency in Private and Public Education: A Nonparametric Comparison

Families of linear efficiency programs based on Debreu’s loss function

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