Abstract
The unifying theme of this dissertation is the measurement of production efficiency, covering both parametric and non-parametric approaches to efficiency assessment. The first chapter considers the estimation of a fixed-effect panel data model with disturbances that are spatially correlated, based on a geographic or economic proximity measure.
The second chapter represents a logical extension of the first as it theoretically develops a random effect panel data model that accounts for spatial correlation across disturbance terms. The model is then applied within the framework of production frontier to the same data set of Indonesian rice farms.
The third chapter addresses the drawbacks of the routine use of ratio analysis in the assessment of retailing performance. Applying multiple input-multiple output data envelopment analysis (DEA), the study assesses the technical and scale efficiency of the retail chain operation of a European mobile operator and identifies input excesses and means of reducing them.
It also provides a review of parametric methodologies (COLS and SFA) and their use in testing the hypothesis of the constant returns to scale of the employed technology. The study concludes with policy recommendations for improvements in the productive efficiency of retail chain operations.