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Full-Text Articles in Social and Behavioral Sciences
Alternative Technical Efficiency Measures: Skew, Bias And Scale, Qu Feng, William C. Horrace
Alternative Technical Efficiency Measures: Skew, Bias And Scale, Qu Feng, William C. Horrace
Economics - All Scholarship
In the fixed-effects stochastic frontier model an efficiency measure relative to the best firm in the sample is universally employed. This paper considers a new measure relative to the worst firm in the sample. We find that estimates of this measure have smaller bias than those of the traditional measure when the sample consists of many firms near the efficient frontier. Moreover, a two-sided measure relative to both the best and the worst firms is proposed. Simulations suggest that the new measures may be preferred depending on the skewness of the inefficiency distribution and the scale of efficiency differences.
Estimating Hypothetical Bias In Economically Emergent Africa: A Generic Public Good Experiment, Arthur J. Caplan, David Aadland, Anthony Macharia
Estimating Hypothetical Bias In Economically Emergent Africa: A Generic Public Good Experiment, Arthur J. Caplan, David Aadland, Anthony Macharia
Applied Economics Faculty Publications
This paper reports results from a contingent valuation based public good experiment conducted in the African nation of Botswana. In a sample of university students, we find evidence that stated willingness to contribute to a public good in a hypothetical setting is higher than actual contribution levels. However, results from regression analysis suggest that this is true only in the second round of the experiment, when participants making actual contributions have learned to significantly lower their contribution levels. As globalization expands markets, and economies such as Botswana's continue to modernize, there is a growing need to understand how hypothetical bias …