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Comparison of the deterministic and stochastic approaches for estimating technical efficiency on the example of non-parametric DEA and parametric SFA methods

Agnieszka Bezat 

Abstract

The author considers in the article estimation of the technical efficiency, which measures the ability of an enterprise to obtain  the maximum output from given input or to use the minimum input to achieve given outputs. The comparison of two approaches: deterministic (on the example of DEA - Data Envelopment Analysis) and stochastic (on the example of SFA - Stochastic Frontier Approach) has been carried out, further the advantages and disadvantages of both were described. These methods were chosen because they have become popular in polish research. They are used since a couple of years by many economists, agro-economists and financiers to estimate efficiency of enterprises. In the article the possible limitations and problems, which may infuence results of studies conducted by using these methods, were considered.

 

Auxiliary resources (full texts, presentations, posters, etc.)
  1. FULLTEXT: Comparison of the deterministic and stochastic approaches for estimating technical efficiency on the example of non-parametric DEA and parametric SFA methods, Microsoft Office Document, 0.2MB
  2. FULLTEXT: Comparison of the deterministic and stochastic approaches for estimating technical efficiency on the example of non-parametric DEA and parametric SFA methods, Microsoft Office Document, 0.2MB
 

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Presentation: Poster at First International Conference Quantitative Methods in Economics, Poster session, by Agnieszka Bezat
See On-line Journal of First International Conference Quantitative Methods in Economics

Submitted: 2009-03-04 15:45
Revised:   2009-06-07 00:48