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http://hdl.handle.net/10419/27098
  
Title:Allocative efficiency measurement revisited: do we really need input prices? PDF Logo
Authors:Badunenko, Oleg
Fritsch, Michael
Stephan, Andreas
Issue Date:2006
Series/Report no.:Freiberg working papers 2006,04
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:D61
L23
L25
L65
Document Type:Working Paper
Appears in Collections:Freiberger Arbeitspapiere, Fakultät für Wirtschaftswissenschaften, Technische Universität Bergakademie Freiberg

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