Aggregation, Efficiency, and Measurement (Studies in Productivity and Efficiency)

AGGREGATION, EFFICIENCY,
AND MEASUREMENT......Page 1
Copyright Page 
......Page 5
Table of Contents 
......Page 6
Preface
......Page 8
Tribute to R. Robert Russell......Page 11
References......Page 14
List of Contributors......Page 16
1 Introduction......Page 18
2.1 Goods and Consumers......Page 20
2.3 The Flows of Resources......Page 21
2.4 Equilibrium......Page 23
3 Tax Reforms......Page 24
3.1 Directions of Change......Page 25
3.2 Strictly Pareto-Improving Equilibrium Preserving Directions of Change......Page 27
4.1 Producer Price Normalizations......Page 28
4.2 Producer and Capital Input (or Savings) Price Normalizations......Page 29
4.3 Consumer Prices Too......Page 32
5 The Structure of the Set of Pareto-Optima......Page 34
7 Tedious Calculations......Page 37
7.2 Motzkin's Theorem......Page 38
7.3 Second-Best Calculations......Page 39
7.4 (112) → (119)......Page 41
7.6 (114) → (121)......Page 42
7.7 (115) → (122)......Page 43
7.9 Normalization Calculations......Page 44
References......Page 45
1 Introduction......Page 47
2 Derivative Properties and Econometric Modelling......Page 50
3 Comparative Statics......Page 53
4 Functional Forms......Page 54
References......Page 58
1 Introduction......Page 60
2.1 The Single Division Agency Problem......Page 63
2.2 The Observability Problem in a Multidivisional Firm......Page 65
3 Synergy in an Agency Context......Page 68
3.1 Merger with Synergy Alone......Page 69
3.2 Merger with Synergy and the Observability Problem......Page 70
Concluding Remarks......Page 72
Appendix......Page 73
References......Page 75
1 Introduction......Page 77
2 An Introduction to the Nonparametric Measurement of Efficiency......Page 78
3.1 The Case of a Convex Technology......Page 80
3.2 The Case of a Convex, Constant Returns to Scale Technology......Page 81
3.3 Quasiconcave Technologies......Page 82
4.1 The Convex Technology Case......Page 84
4.2 The Convex Conical Technology Case......Page 86
5 Relationships between the Efficiency Measures......Page 88
6 An Empirical Comparison of Alternative Efficiency Measures for Canada......Page 89
7 A Comparison of the Alternative Methods for Measuring Productive Efficiency......Page 93
References......Page 94
2 Basic Production Theory Details......Page 97
2.1 The Debreu-Farrell and Russell Equivalence......Page 99
2.2 The Directional Distance Function and the Additive Measure......Page 101
2.3 Cost Interpretations......Page 102
References......Page 104
1 Introduction......Page 110
2 Method......Page 112
3 Data and Estimation......Page 113
3.1 Data......Page 114
4 Results......Page 115
4.1 The Usual Suspects......Page 119
References......Page 125
6 Data Appendix......Page 128
1 Introduction......Page 130
2.1 Model......Page 131
2.2 Estimation of the Unknown Production Function......Page 132
2.3 Estimation of Technical Efficiency......Page 133
2.4 Estimation of Higher-Order Moments......Page 134
3 Empirical Example......Page 135
References......Page 140
1 Introduction......Page 142
2.1 Ideas......Page 143
2.3 Preferences......Page 144
3.1 Preferences......Page 145
3.2 Budget Constraint......Page 146
4 Efficient Growth......Page 147
5 Market Equilibrium with No Patent System......Page 148
6 Market Equilibrium with a Patent System......Page 149
7.1 Technical Inefficiency......Page 152
7.2 Measuring Economic Inefficiency......Page 153
8 Inefficiency of the Economy without Patents......Page 154
9 Comparing Institutions......Page 155
References......Page 156
1 Introduction......Page 158
2 Efficiency Measures: Debreu and Farrell or Diewert?......Page 159
3 An Example......Page 160
4 Back to the Model......Page 161
5 Another Example......Page 162
6 Conclusion......Page 163
References......Page 164
Index......Page 165