Title: Firm and industry level profit efficiency analysis under incomplete price data: a nonparametric apporach based on absolute and uniform shadow prices
Authors: Kuosmanen, T. ×
Kortelainen, M.
Sipilainen, T.
Cherchye, Laurens #
Issue Date: 2010
Publisher: Elsevier
Series Title: European Journal of Operational Research vol:202 issue:2 pages:584-594
Abstract: We discuss the nonparametric approach to profit efficiency analysis at the firm and industry levels in the absence of complete price information. Two new insights are developed. First, we measure profit inefficiency in monetary terms using absolute shadow prices. Second, we evaluate all firms using the same input–output prices. This allows us to aggregate firm-level profit inefficiencies to the overall industry inefficiency. Besides the measurement of profit losses, the presented approach enables one to recover absolute price information from quantity data. We conduct a series of Monte Carlo simulations to study the performance of the proposed approach in controlled production environments.
ISSN: 0377-2217
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Research Center of Public Economics, Leuven
Department of Economics, Leuven - miscellaneous
× corresponding author
# (joint) last author

Files in This Item:
File Description Status SizeFormat
firmandindustry.pdf Published 275KbAdobe PDFView/Open Request a copy

These files are only available to some KU Leuven Association staff members


All items in Lirias are protected by copyright, with all rights reserved.

© Web of science