A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms

Kumbhakar, Subal C.; Ghosh, Soumendra N.; McGuckin, J. Thomas

doi:10.2307/1391292

Cited by 298 publications

(169 citation statements)

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“…7 Battese and Coelli (1995) extend the approach by Kumbhakar et al (1991) to accommodate panel data. However, it should be noted that this model does not in fact exploit the panel aspect of the data set in order to deal with the unobserved heterogeneity.…”

Section: Cost Model Specifications and Estimation Methodsmentioning

confidence: 99%

The impact of ownership unbundling on cost efficiency: Empirical evidence from the New Zealand electricity distribution sector

Filippini

Wetzel

2014

Energy Economics

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Section: Cost Model Specifications and Estimation Methodsmentioning

confidence: 99%

The impact of ownership unbundling on cost efficiency: Empirical evidence from the New Zealand electricity distribution sector

Filippini

Wetzel

2014

Energy Economics

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“…with a Tobit censored regression model) on the exogenous variables. However, as pointed out by Kumbhakar, Gosh and McGuckin (1991) and Reifenschneider and Stevenson (1991) there are serious econometric problems with this approach. First, it must be assumed that the (in)efficiencies scores obtained in the first stage are independently and identically distributed, but if this is the case, the assumption that the (in)efficiency scores exhibit a functional relationship with the exogenous variables in the second stage is contradicted.…”

Section: Estimation Approachmentioning

confidence: 99%

The Impact of Intergovernmental Grants on Cost Efficiency: Theory and Evidence from German Municipalities

Kalb

2010

Economic Analysis and Policy

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. Terms of use: Documents in EconStor mayDownload this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp08051.pdf Non-Technical SummaryA key issue in the theoretical and empirical literature of public finance is how intergovernmental grants influence the level of local public spending of the recipient government.Researchers have been particularly interested in whether grants from the federal government stimulate higher levels of overall spending by local governments or rather substitute for local tax revenue. The first effect is called the 'flypaper effect' following Arthur Okun's observation that 'money sticks where it hits'. In contrast, an aspect which has attracted far less attention in the flypaper literature is concerned with the question whether observed changes in expenditures are associated with analogous changes in the actual level of public goods or services or whether increases in expenditures lead (at least to some extent) to a waste of resources (or X-inefficiency) and losses in productive efficiency.Given this background the aim of this paper is to add to the existing literature by studying the causal effects of intergovernmental grants on local technical efficiency in Germany. For this purpose we use a simple bureaucracy model and introduce the possibility that the federal government is able to give (lump sum) grants to the local government as a substitute for local tax revenues. Moreover, we assume that the citizens of the local jurisdiction are susceptible to a misperception of the true tax price of the local public goods or services due to fiscal illusion. In fact, it is assumed that a higher amount of intergovernmental grants leads to an underestimation of the true tax price by the citizens and therefore to a higher demand of public output. Using this framework we analyse how a higher degree of redistribution, that is an increase in the amount of grants to the local government, affects the technical efficiency in the provision of public goods and services in this local jurisdiction. We find that a higher degree of redistribution has a negative impact on the technical efficiency in the local jurisdiction.Finally...

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“…We model the industry best practice frontiers by accounting for, …rstly, inter-bank heteroscedasticity in u à la Kumbhakar et al (1991) and Battese and Coelli (1995) and secondly, unobservable heterogeneity in banks' technologies by following the 'true SFA' framework (Greene, 2005). In particular, we model the latent heterogeneity in banks'technologies using bank …xed e¤ects.…”

Section: Empirical Methodologymentioning

confidence: 99%

Bank performance and the financial crisis: evidence from Kazakhstan

Glass

Kenjegalieva

Weyman‐Jones

2014

Applied Financial Economics

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A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms

Cited by 298 publications

References 0 publications

The impact of ownership unbundling on cost efficiency: Empirical evidence from the New Zealand electricity distribution sector

The impact of ownership unbundling on cost efficiency: Empirical evidence from the New Zealand electricity distribution sector

The Impact of Intergovernmental Grants on Cost Efficiency: Theory and Evidence from German Municipalities

Bank performance and the financial crisis: evidence from Kazakhstan

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