Bias free measurement of technical efficiency |
| |
Authors: | Kaliappa Kalirajan Shashanka Bhide |
| |
Institution: |
a Foundation for Advanced Studies on International Development, Tokyo, Japan
b National Council of Applied Economic Research, New Delhi, India |
| |
Abstract: | Technical efficiency, which is a measure of production performance of a firm, has been estimated generally using a primal production frontier. Since the estimation is carried out for a given level of inputs, the efficiency measure includes the effect of 'input-mix' or 'input-allocation' and consequently, the technical efficiency estimate is biased. The objectives of this paper are to gauge the magnitude of 'input-mix' bias in technical efficiency estimate and to suggest a method to measure technical efficiency eliminating the bias. The workability of the suggested method is demonstrated through an empirical analysis using agricultural data from India covering the period 1970-1993. |
| |
Keywords: | Technical efficiency input-mix bias frontier production function India |
本文献已被 InformaWorld 等数据库收录! |