Nonparametric estimation of allocative efficiency using indirect production theory: Application to container ports in Norway
Journal article, Peer reviewed
Published version
Permanent lenke
https://hdl.handle.net/11250/3143018Utgivelsesdato
2024-01-25Metadata
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Originalversjon
10.1007/s11123-024-00719-1Sammendrag
Adaption to prices is an important feature of productivity development. This paper proposes an extension of the StoNED model to accommodate estimation of allocative efficiency. It demonstrates how indirect production theory is suited for assessing allocative efficiency and helps alleviating the curse of dimensionality for stochastic nonparametric estimators compared to conventional measures of allocative efficiency. Furthermore, the paper elaborates on the appropriate cost of capital for the estimation of allocative efficiency. The proposed model framework is utilized to study allocative efficiency of Norwegian container ports, thereby adding to the literature on seaport terminal efficiency studies. Nonparametric estimation of allocative efficiency using indirect production theory: Application to container ports in Norway