2005 Fiscal Year Final Research Report Summary
A dynamic analysis of technical inefficiency's generating process with panel data
| Project/Area Number |
16530150
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Applied economics
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| Research Institution | Yokohama National University |
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Principal Investigator |
TORII Akio Yokohama National University, International Graduate School of Social Sciences, Professor, 大学院・国際社会科学研究科, 教授 (40164066)
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| Project Period (FY) |
2004 – 2005
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| Keywords | technical inefficiency / vintage model / exponential power family |
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| Research Abstract |
The purpose of this research project is to analyze dynamic changes of technical inefficiency, estimating establishments' inefficiency level and asset vintage. To achieve this purpose, a stochastic process model which explain changes of units' inefficiency level was constructed. Employing the model I investigated some statistical features in distribution of inefficiency levels. Next, employing establishments panel data the distribution of inefficiency level conditioned on inefficiency level at previous period was estimated. I analyzed some statistical character of this distribution and conducted some tests which was lead from theoretical models.
On the first step of this research, by theoretical model analysis and empirical analysis employing cross-section data a vintage stochastic process model with exponential power family distribution was chosen to be appropriate. On the second step, I tested this hypothesis.
I investigated Japan's regional food supermarket which provides us a large number of homogeneous establishments' samples. I was able to obtain more than 4,000 samples. From this panel data production functions as well as levels of technical inefficiency are estimated. Then differences in estimated inefficiency levels were calculated and employed to test some hypothesis.
This procedure provided me almost the same level of a parameter 'p' in stochastic process with those of parameter in exponential power family distribution estimated from cross-section data. Then a hypothesis presented by the author in "Efficiency in Japanese Industries" was supported affirmatively. In Japan's regional food retail market, inefficiencies tend to be improved with higher probability as inefficiency become severer, although the probability increases only in diminishing manner.
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