Dynamic efficiency measurement: Theory and application

• Type: Article in International Scientific Journal
• Date: 2007

Authors

Elvira Silva (Author) FEP; Spiro E. Stefanou (Author) Other

Journal

Title: American Journal of Agricultural Economics

Vol. 89 No. 2

Pages: 398-419

ISSN: 0002-9092

Publisher: Wiley-Blackwell

Indexing

ISI Web of Knowledge - 80 Citations

Scopus - 86 Citations

Scientific classification

FOS: Social sciences

Other information

Authenticus ID: P-004-A5V

DOI: 10.1111/j.1467-8276.2007.00999.x

Abstract (EN): Nonparametric dynamic measures of production efficiency are developed in the context of an adjustment-cost technology and intertemporal cost minimization. Bounds on each efficiency measure are derived for each firm using a nonparametric revealed preference approach. Long-run efficiency measures indicate the relative efficiency of both variable and dynamic factors while short-run measures of efficiency indicate whether variable inputs are employed efficiently in the production process. The efficiency measures are temporal in nature by describing the degree of efficiency of the firm at a particular point along its adjustment path. The empirical implementation is illustrated for a balanced panel of Pennsylvania dairy operators during 1986-1992.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 22