JZUS - Journal of Zhejiang University SCIENCE

Journal of Zhejiang University SCIENCE A 2008 Vol.9 No.10 P.1426-1436

http://doi.org/10.1631/jzus.A0820121

A comparative analysis of multi-output frontier models

Author(s): Tao ZHANG, Eoghan GARVEY
Affiliation(s): Department of Economics, National University of Ireland, Galway, Ireland
Corresponding email(s): taozhang7608@hotmail.com
Key Words: Efficiency, Multi-output, Stochastic distance function frontier, Stochastic ray frontier, Data envelopment analysis (DEA), Correlation

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Abstract: Recently, there have been more debates on the methods of measuring efficiency. The main objective of this paper is to make a sensitivity analysis for different frontier models and compare the results obtained from the different methods of estimating multi-output frontier for a specific application. The methods include stochastic distance function frontier, stochastic ray frontier, and data envelopment analysis. The stochastic frontier regressions with and without the inefficiency effects model are also compared and tested. The results indicate that there are significant correlations between the results obtained from the alternative estimation methods.

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