Interactive benchmarking: a stochastic frontier approach

TY - JOUR

T1 - Interactive benchmarking

T2 - a stochastic frontier approach

AU - Lawson, Lartey

AU - Nielsen, Kurt

PY - 2005

Y1 - 2005

N2 - We discuss individual learning by interactive benchmarking using stochastic frontier models. The interactions allow the user to tailor the performance evaluation to preferences and explore alternative improvement strategies by selecting and searching the different frontiers using directional distance functions. The frontier is given by an explicit quantile, e.g. “the best 90 %”. Using the explanatory model of the inefficiency, the user can adjust the frontiers by submitting state variables that influence the inefficiency. An efficiency study of Danish dairy farms is implemented in the suggested benchmarking tool. The study investigates how different characteristics on dairy farms influences the technical efficiency.

AB - We discuss individual learning by interactive benchmarking using stochastic frontier models. The interactions allow the user to tailor the performance evaluation to preferences and explore alternative improvement strategies by selecting and searching the different frontiers using directional distance functions. The frontier is given by an explicit quantile, e.g. “the best 90 %”. Using the explanatory model of the inefficiency, the user can adjust the frontiers by submitting state variables that influence the inefficiency. An efficiency study of Danish dairy farms is implemented in the suggested benchmarking tool. The study investigates how different characteristics on dairy farms influences the technical efficiency.

M3 - Journal article

SN - 1681-8997

VL - 4

SP - 231

EP - 246

JO - The Empirical Economics Letters

JF - The Empirical Economics Letters

IS - 4

ER -