Measuring the technical efficiency trough maximum likelihood models: A comparison between alterna-tive specifications applied to a university

Alfredo Moreno Sáez, José Luis Montes Botella and David Trillo del Pozo
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Alfredo Moreno Sáez: Facultad de Ciencias Económicas y Empresariales. Universidad Complutense de Madrid.
José Luis Montes Botella: Universidad Rey Juan Carlos
David Trillo del Pozo: Universidad Rey Juan Carlos

No 00-28, Documentos de trabajo de la Facultad de Ciencias Económicas y Empresariales from Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales

Abstract: This paper presents an application of efficiency measurement stochastic techniques to a University Department scientific production. In the first part, we follow Lovell´s (1982) model to carry out a static analysis with the variable averages in the selected period. The model sensibility to the chosen adjusted production function is analysed considering the CES, Cobb-Douglas and Translog functions. Afterwards, the efficiency estimation for each one of the Departments in consideration is carried out by means of the efficiency term conditional expectancy on the global error. The second part studies the dynamic estimate, following Batesse and Coelli (1992, 1995), through different functional forms. In this case, different assumptions of efficiency evolution, for fixed and variable effects, are considered and estimated again for each production unit (Department) and period. To be able to consider non-lineal models and split residuals, maximum likelihood estimate is applied. Lastly, the efficiency indexes homogeneity is studied in both dynamic and static models.

Keywords: Stochastic frontier; Maximum likelihood; Efficiency; Panel data; Higher education. (search for similar items in EconPapers)
Pages: 22 pages
Date: 2000
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