| Registro completo |
| Provedor de dados: |
AgEcon
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| País: |
United States
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| Título: |
Feasible Estimation of Firm-Specific Allocative Inefficiency through Bayesian Numerical Methods
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| Autores: |
Atkinson, Scott E.
Dorfman, Jeffrey H.
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| Data: |
2005-05-09
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| Ano: |
2005
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| Palavras-chave: |
Research Methods/ Statistical Methods
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| Resumo: |
The estimation of allocative and technical inefficiency has grown to an enormous body of literature, both theoretical and empirical. Ideally, one would estimate time-varying firm and input-specific parameters describing allocative inefficiency in order to minimize aggregation bias. However, this has never been previously accomplished. Typically, only industry-wide allocative efficiency parameters have been empirically identified. Our proposed solution is to employ Gibbs sampling to approximate posterior distributions from a Bayesian limited information model, embedding GMM moment conditions imposed via an instrumental variables step to obtain plant-specific parameters estimates that vary flexibly over time. For a panel of Chilean hydroelectric power plants, posterior distributions of these estimates display substantial differences in location and precision. By contrast, the standard GMM approach which produces industry-wide, time-varying allocative inefficiency parameters, not only fails to reveal the inter-plant differences by construction, but does not even produce posterior medians that approximate a weighted average of the plant-specific posterior medians.
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| Tipo: |
Conference Paper or Presentation
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| Idioma: |
Inglês
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| Identificador: |
16094
http://purl.umn.edu/19402
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| Editor: |
AgEcon Search
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| Relação: |
American Agricultural Economics Association>2005 Annual meeting, July 24-27, Providence, RI
Selected Paper 136454
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| Formato: |
38
application/pdf
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