The Nonparametric Approach

摘要: The nonparametric approach to the measurement of productive efficiency can be specified either through a flexible form production function which satisfies hypothesis, or set-theoretic characterization an efficient isoquant. In first case frontier any general shape satisfying some very weak conditions like quasi-concavity monotonicity, although in most empirical and applied work piecewise linear or, log-linear functions have been frequently used. Thus both Farrell Johansen programming models specification frontier. Farrell’s measure is based on estimating by sequence programs (LPs) convex hull observed input coefficients space. Two features make it useful research. One that completely data-based i.e., uses only inputs outputs sample units while assuming homogeneous degree one. Hence has many potential applications for public sector units, where price data are not available. For example consider educational schools, such as test scores achievement tests proxy variables learning; average class size, experience teachers ethnic background students do market prices. Secondly, method set LP estimate parameters, so appears functions. Nonnegativity parameter estimates therefore easily incorporated.