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Article
Technical Efficiency Estimation with Multiple Inputs and Multiple Outputs Using Regression Analysis
European Journal of Operational Research
  • Trevor Collier, University of Dayton
  • Andrew L. Johnson, Texas A & M University - College Station
Document Type
Article
Publication Date
1-1-2011
Abstract

Regression and linear programming provide the basis for popular techniques for estimating technical efficiency. Regression-based approaches are typically parametric and can be both deterministic or stochastic where the later allows for measurement error. In contrast, linear programming models are nonparametric and allow multiple inputs and outputs. The purported disadvantage of the regression-based models is the inability to allow multiple outputs without additional data on input prices. In this paper, deterministic cross-sectional and stochastic panel data regression models that allow multiple inputs and outputs are developed. Notably, technical efficiency can be estimated using regression models characterized by multiple input, multiple output environments without input price data. We provide multiple examples including a Monte Carlo analysis.

Inclusive pages
153-160
ISBN/ISSN
0377-2217
Publisher
Elsevier
Peer Reviewed
Yes
Citation Information
Trevor Collier and Andrew L. Johnson. "Technical Efficiency Estimation with Multiple Inputs and Multiple Outputs Using Regression Analysis" European Journal of Operational Research Vol. 208 Iss. 2 (2011)
Available at: http://works.bepress.com/trevor_collier/9/