A Multiple Output Stochastic Ray Frontier Production Model

Mickael Löthgren ()
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Mickael Löthgren: Department of Economic Statistics, Postal: Stockholm School of Economics, Box 6501, 113 83 Stockholm, Sweden

No 158, SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics

Abstract: This paper proposes an approach to specify and estimate multiple input, multiple output production frontiers and technical efficiency using a stochastic ray frontier production model A possible model extension is to incorporate a technical efficiency effects model to allow estimation of the effects of various explanatory variables on technical efficiency. An empirical application using Swedish health care data reveals a significant positive effect on technical efficiency of an "internal market" reform while the effect on the production frontier is negative. Technical change is found to be positive while technical efficiency has decreased over time.

Keywords: Composed error model; distance function; panel data; stochastic ray frontier model; technical change; technical efficiency (search for similar items in EconPapers)
JEL-codes: C12 C13 C21 C23 D24 (search for similar items in EconPapers)
Pages: 15 pages
Date: 1997-02
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Citations: View citations in EconPapers (1)

Published in Applied Economics, 2000, pages 1533-1540.

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:hastef:0158

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