Estimating indirect allocative inefficiency and productivity change |
| |
Authors: | H Fukuyama W L Weber |
| |
Institution: | 1.Fukuoka University,Fukuoka,Japan;2.Southeast Missouri State University,Cape Girardeau |
| |
Abstract: | Building on the method used in previous indirect production studies, we construct an indicator of indirect output allocative inefficiency. Our indicator equals the difference between a revenue-constrained directional input distance function and a directional input distance function that depends on outputs, rather than revenue. The indicator measures the overuse of inputs that occurs when firms do not choose a revenue maximizing mix of outputs. Adding a time dimension allows productivity change to be measured. In an empirical illustration of our method we find that Japanese banks use, between 2% and 7%, too many inputs because bank outputs are inefficiently allocated. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|