This paper develops a slack-based decomposition of profit efficiency based on a direc- tional distance function. It complements Cooper, Pastor, Aparicio and Borras (2011).

In this note we investigate the power of significance test for dummy-variables in the context of Simar and Wilson (2003) two-stage efficiency analysis model.

In this paper we compare productivity, efficiency and technological changes with and without case-mix as output categories using panel data on Ontario hospitals for the period 2002–2006. We use the Malmquist Productivity Index (MPI), Data Envelopment Analysis (DEA), and non-parametric density...

In this paper we consider the question of measuring aggregate economic growth and its sources. We derive a theoretically justified solution for aggregating (across firms, industries, countries, etc.) growth rates and their sources within the framework of Solow?s (1957) growth accounting method....

In this paper we propose a very flexible estimator in the context of truncated regression that does not require parametric assumptions. To do this, we adapt the theory of local maximum likelihood estimation. We provide the asymptotic results and illustrate the performance of our estimator on...

Shephard’s distance functions are widely used instruments for characterizing technology and for estimating efficiency in contemporary economic theory and practice. Recently, they have been generalized by the Luenberger shortage function, or Chambers-Chung-Färe directional distance function....

This note shows that the Nerlovian profit indicator may be aggregated over firms into an industry measure of profit efficiency. The note also provides conditions under which the technical component of the indicator may also be aggregated.