Do we estimate an input or an output distance function? An application of the mixture approach to European railways
By Subal C. Kumbhakar, Luis Orea, Ana Rodríguez-Álvarez, Efthymios G. Tsionas. 2007
61 citations recorded by the source corpus.
In this paper, we estimate parametric input and output distance functions and discuss how to estimate a mixture/latent class model (LCM) involving the output and input distance functions in the context of multi-input and multi-output production technology. The proposed technique is applied to a panel data on European Railways (1971–1994). This model allows us to identify determinants of the efficiency orientation, thereby providing useful information that can help researchers to choose between the input and the output-oriented approaches. In addition, we develop cross-indices that can be used to compute input (output) technical inefficiency from the estimates of output (input) distance function.
Subfields: Economics and Econometrics, Management Science and Operations Research, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/b43fb79b5c0996c1fbeb6c04fe05e8d5ef6c3a46
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In Economics and Econometrics
In Management Science and Operations Research
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Citations in the corpus
- Women's labour contribution to productivity and efficiency in agriculture: empirical evidence from Bangladesh. (2010, unknown): “…approach to measure technical efficiency is appropriate when output is endogenous (e.g., revenue maximization case) and inputs are exogenous, whereas an input oriented approach is appropriate when inputs are endogenous (e.g., cost minimization case) and output is exogenous (Kumbhakar et al., 2007).”
- Whether crop diversification is a desired strategy for agricultural growth in Bangladesh (2009, background): “…approach to measure technical efficiency is appropriate when output is endogenous (e.g., revenue maximization case) but inputs are exogenous, whereas an input oriented approach is appropriate when inputs are endogenous (e.g., cost minimization case) but output is exogenous (Kumbhakar et al., 2007).”
- Technical Efficiency among Peasant Farmers Participating in Natural Resource Management Programmes in Central America (2009, background): “2 Kumbhakar et al. (2007) present the theoretical basis to frame the input-oriented SDF within a cost minimisation model.”