Making noisy data sing : a micro approach to measuring industrial efficiency

About

Countries

Data & Research

Learning

News

Projects & Operations

Publications

Topics

Home > Data & Research > Document Search > Report Details

Making noisy data sing : a micro approach to measuring industrial efficiency, Volume 1

Author:	Tybout, James R.;	Collection Title:	Policy, Planning and Research Department working papers ; no. WPS 327
Date Stored:	2001/04/27	Document Date:	1990/01/31
Document Type:	Policy Research Working Paper	Language:	English
Major Sector:	(Historic)Private Sector Development	Report Number:	WPS327
Sub Sectors:	Business Environment	SubTopics:	Environmental Economics & Policies; Information Technology; Economic Theory & Research; Banks & Banking Reform; Statistical & Mathematical Sciences
Volume No:	1

Summary: Technical, scale and allocative inefficiency are widely believed to plague the industrial sectors of developing countries. This paper presents a way to measure this inefficiency with imperfect data. There is great interest in documenting the patterns and magnitudes of inefficiency, so that appropriate corrective policies can be designed. This paper presents a new approach to analyzing plant efficiency that recognizes and deals with such data imperfections as measurement error, missing observations and selectivity bias. The author has developed full-information maximum-likelihood (FIML) estimators of production technologies that deal with missing data and measurement errors, making alternative assumptions about the missing data patterns and the timing of employment and decisions. These estimators yield indices of the returns to scale, means square deviation from the efficient frontier and - when labor is treated as endogenous - mean square deviation from efficient factor mixes. To gauge the performance of the alternative estimators, the author applies them to census data on Chilean industry, and compares the results with naive estimators that do not recognize data imperfections.


Official Documents Official, scanned versions of documents (may include signatures, etc.)
File Type		Description	File Size (mb)

	PDF 35 pages	Official version*	2.45 (approx.)
	Text	Text version**

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.

** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.

Permanent URL for this page: http://go.worldbank.org/6TEWZU7I70