Papers by Shelton Schmidt
Studies in Industrial Organization, 1992
ABSTRACT The slowdown in productivity growth in the U.S. economy which began in the 1960s, has be... more ABSTRACT The slowdown in productivity growth in the U.S. economy which began in the 1960s, has been extensively documented,1 and electric utilities appear to be among the worst hit by the slowdown. For the period 1947 to 1973, Gollop and Jorgenson (1980) found electric utilities to have the sixth highest rate of productivity growth in their sample of 51 industries. Subsequently, Gollop (1985) compared the productivity growth of 45 industries from 1948 to 1966, to their record in the 1966-1976 period.
Journal of productivity Analysis, 1999
The ability of a production unit to transform inputs into outputs is influenced by its technical ... more The ability of a production unit to transform inputs into outputs is influenced by its technical efficiency and external operating environment. This paper introduces a nonparametric, linear programming, frontier procedure for obtaining a measure of managerial efficiency that controls for exogenous features of the operating environment. The approach also provides statistical tests of the effects of external conditions on the efficient use of each individual input (for an input oriented model) or for each individual output (for an output oriented model). The procedure is illustrated for a sample of nursing homes.
Journal of Productivity …, 2002
In this paper we propose a new technique for incorporating environmental effects and statistical ... more In this paper we propose a new technique for incorporating environmental effects and statistical noise into a producer performance evaluation based on data envelopment analysis (DEA). The technique involves a three-stage analysis. In the first stage, DEA is applied to outputs and inputs only, to obtain initial measures of producer performance. In the second stage, stochastic frontier analysis (SFA) is used to regress first stage performance measures against a set of environmental variables. This provides, for each input or output (depending on the orientation of the first stage DEA model), a three-way decomposition of the variation in performance into a part attributable to environmental effects, a part attributable to managerial inefficiency, and a part attributable to statistical noise. In the third stage, either inputs or outputs (again depending on the orientation of the first stage DEA model) are adjusted to account for the impact of the environmental effects and the statistical noise uncovered in the second stage, and DEA is used to re-evaluate producer performance. Throughout the analysis emphasis is placed on slacks, rather than on radial efficiency scores, as appropriate measures of producer performance. An application to nursing homes is provided to illustrate the power of the three-stage methodology. JEL classification: D24, C44, C53
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Papers by Shelton Schmidt