The Measurement Of Efficiency Where There Are Multiple Outputs

John L. Whiteman

Centre of Policy Studies/IMPACT Centre Working Papers from Victoria University, Centre of Policy Studies/IMPACT Centre

Abstract: This paper is motivated by the empirical observation that in many studies the elasticity of output with respect to labour is often negative and/or insignificant. The present study applies multiple output models to estimate the technical efficiency of enterprises in the international electricity, gas and telecom-munications industries. The results support the contention that single output production models may yield misleading results in respect of the elasticities of inputs such as labour. The results also suggest that relatively simple DEA and ordinary least squares models may be preferred to more complex stochastic frontier models in estimating the technical efficiency of enterprises.

Keywords: multiple output; data envelopment analysis; stochastic production frontier; distance function; ray frontier; technical efficiency (search for similar items in EconPapers)
JEL-codes: D24 L94 L95 L96 (search for similar items in EconPapers)
Date: 1999-11
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Persistent link: https://EconPapers.repec.org/RePEc:cop:wpaper:g-134

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