Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/22112
Authors: 
Badunenko, Oleg
Fritsch, Michael
Stephan, Andreas
Year of Publication: 
2006
Series/Report no.: 
The Postgraduate Research Programme working paper series / Europa-Universität Viadrina Frankfurt (Oder), Graduiertenkolleg "Kapitalmärkte und Finanzwirtschaft im erweiterten Europa" 2006,7
Abstract: 
The traditional approach to measuring allocative efficiency is based on input prices, which are rarely known at the firm level. This paper proposes a new approach to measure allocative efficiency which is based on the output-oriented distance to the frontier in a profit?technical efficiency space-and which does not require information on input prices. To validate the new approach, we perform a Monte-Carlo experiment which provides evidence that the estimates of the new and the traditional approach are highly correlated. Finally, as an illustration, we apply the new approach to a sample of about 900 enterprises from the chemical industry in Germany.
Subjects: 
allocative efficiency
data envelopment analysis
frontier analysis
technical efficiency
Monte-Carlo study
chemical industry
JEL: 
L23
L65
D61
L25
Document Type: 
Working Paper

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