Allocative efficiency measurement revisited: do we really need input prices?

Arbeitspapier

The traditional approach to measuring allocative efficiency is based on input prices, which are rarely known at the firm level. This paper proposes a new approach to measure allocative efficiency which is based on the output-oriented distance to the frontier in a profit - technical efficiency space - and which does not require information on input prices. To validate the new approach, we perform a Monte-Carlo experiment which provides evidence that the estimates of the new and the traditional approach are highly correlated. Finally, as an illustration, we apply the new approach to a sample of about 900 enterprises from the chemical industry in Germany.

Objekt anzeigen

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Freiberger Arbeitspapiere ; No. 2006/04

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Allocative Efficiency; Cost-Benefit Analysis ; Organization of Production ; Firm Performance: Size, Diversification, and Scope ; Chemicals; Rubber; Drugs; Biotechnology; Plastics
• Thema: Allocative efficiency ; data envelopment analysis ; frontier analysis ; technical efficiency ; Monte-Carlo study ; chemical industry

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Badunenko, Oleg ; Fritsch, Michael ; Stephan, Andreas
• Ereignis: Veröffentlichung
• (wer): Technische Universität Bergakademie Freiberg, Fakultät für Wirtschaftswissenschaften
• (wo): Freiberg
• (wann): 2006

Weitere Informationen

• Handle: http://hdl.handle.net/10419/27098