Return to Dollar, Generalized Distance Function and the Fisher Productivity Index

Zofío, José L.; Prieto, Angel

doi:10.1007/s10108-006-9004-0

Cited by 32 publications

(12 citation statements)

References 23 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…As Zofı´o and Lovell (2001) note, the additive nature of the directional distance function and its duality to the profit function makes it more suitable -dual -for profit efficiency measurement, rather than for productivity analysis. The duality between the generalized distance function and productivity indexes as shown in Zofı´o and Prieto (2006) makes the Chavas and Cox (1999) approach more suitable for our purposes. We assume that for each period t = 1, .…”

Section: Measuring Performance In the Presence Of Undesirable Outputsmentioning

confidence: 99%

Accounting for quality in the measurement of hospital performance: evidence from Costa Rica

Arocena

García-Prado

2006

Health Economics

View full text Add to dashboard Cite

This paper provides insights into how Costa Rican public hospitals responded to the pressure for increased efficiency and quality introduced by the reforms carried out over the period 1997-2001. To that purpose we compute a generalized output distance function by means of non-parametric mathematical programming to construct a productivity index, which accounts for productivity changes while controlling for quality of care. Our results show an improvement in hospital performance mainly driven by quality increases. The adoption of management contracts seems to have contributed to such enhancement, more notably for small hospitals. Further, productivity growth is primarily due to technical and scale efficiency change rather than technological change. A number of policy implications are drawn from these results.

show abstract

Section: Measuring Performance In the Presence Of Undesirable Outputsmentioning

confidence: 99%

Accounting for quality in the measurement of hospital performance: evidence from Costa Rica

Arocena

García-Prado

2006

Health Economics

View full text Add to dashboard Cite

show abstract

“…We then show that it can be decomposed into a measure of economic efficiency represented by the generalized distance function introduced by Chavas and Cox (1999), and a factor defined as the geometric mean of the allocative efficiencies corresponding to the n shadow prices. Let us define maximum profitability as Zofío and Prieto (2006) proved that…”

Section: Profitability Cross-efficiencymentioning

confidence: 99%

“…As the economic goal is different, the underlying duality that allows a consistent measurement of economic cross-efficiency is different. For example, for the revenue function, the dual representation of the technology is the output distance function (Shephard, 1953), while for the profitability function it is the generalized distance function (Zofío and Prieto, 2006). Moreover, since the generalized distance function nests the input and output distance functions as particular cases (as well as the hyperbolic distance function), we can relate the cost, revenue and profitability cross-efficiency models.…”

Section: Introductionmentioning

confidence: 99%

New Definitions of Economic Cross-Efficiency

Aparicio

Zofío

2019

SSRN Journal

View full text Add to dashboard Cite

Overall efficiency measures were introduced in the literature for evaluating the economic performance of firms when reference prices are available. These references are usually observed market prices. Recently, Aparicio and Zofío (2019) have shown that the result of applying cross-efficiency methods (Sexton et al., 1986), yielding an aggregate multilateral index that compares the technical performance of firms using the shadow prices of competitors, can be precisely reinterpreted as a measure of economic efficiency. They termed the new approach 'economic cross-efficiency'. However, these authors restrict their analysis to the basic definitions corresponding to the Farrell (1957) and Nerlove (1965) approaches, i.e., based on the duality between the cost function and the input distance function and between the profit function and the directional distance function, respectively. Here we complete their proposal by introducing new economic cross-efficiency measures related to other popular approaches for measuring economic performance. Specifically those based on the duality between the profitability (maximum revenue to cost) and the generalized (hyperbolic) distance function, and between the profit function and either the weighted additive or the Hölder distance function. Additionally, we introduce panel data extensions related to the so-called cost Malmquist index and the profit Luenberger indicator. Finally, we illustrate the models resorting to Data Envelopment Analysis techniquesfrom which shadow prices are obtained, and considering a banking industry dataset previously used in the cross-efficiency literature.

show abstract

“…Recently, Zofio and Prieto (2006) (henceforth ZP) proposed a third decomposition of the Fisher TFP index based on a generalized graph distance function by Chavas and Cox (1999), which requires specification of a weighting parameter that determines the projection path to the frontier. The ZP decomposition consists of a technical component represented by the Malmquist index and an economic component consisting of an allocative efficiency component and a residual allocative term.…”

Section: Introductionmentioning

confidence: 99%