PhD-course: Theory and Practice of Efficiency and Productivity

December 12^th - December 16^th 2022 in Lillehammer, Norway

This is an advanced econometric PhD-course, with focus on efficiency and productivity measurement using an econometric/stochastic frontier approach. Participants will learn theories concerning efficiency and productivity measurement and will develop proficiency with software to facilitate the initiation of their own research in efficiency and productivity measurement. The course deals with both conceptual and methodological issues.

Program

Monday, December 12th, 2022

• Introduction
• Cross-Sectional Methods
• Estimating Firm Specific Inefficiency
• Determinants of Inefficiency
• Alternative SF models (mixture models/ZISF) 
• Estimation/Inference of Cross-Sectional SF models in R

Tuesday, December 13th, 2022

• History of Panel Data Stochastic Frontier Model
• First Generation Panel Data Models
• Second Generation Panel Data Models
• The Closed Skew Normal Distribution
• Estimation/Inference of Panel Data SF models in Stata

Wednesday, December 14th, 2022

• Semi/Nonparametric Production Frontiers
• Nonparametric Estimation of the Determinants of Inefficiency
• Estimation of Non/Semiparametric SF models in R

Thursday, December 15th, 2022

• Modeling Multiple Outputs
• The Input/Output Distance Function
• Endogeneity in the Cross-Sectional Stochastic Frontier Model
• Endogeneity in the Panel Data Stochastic Frontier Model

Friday, December 16th, 2022

• Spatial Stochastic Frontier Models
• Alternative uses of Stochastic Frontier Analysis

Course Materials

• Kumbhakar, S. and C.A.K. Lovell, 2000. Stochastic Frontier Analysis, Cambridge University Press, 340 pages.
• Kumbhakar, S.C., Wang, H., & Horncastle, A.P., 2015. A Practitioner's Guide to Stochastic Frontier Analysis Using Stata. Cambridge University Press, 359 pages.
• Kumbhakar, S.C., Parmeter, C.F., Zelenyuk, V., 2022a. Stochastic frontier analysis: Foundations and advances I. Handbook of Production Economics, Volume 1, 331‑370.
• Kumbhakar, S.C., Parmeter, C.F., Zelenyuk, V., 2022b. Stochastic frontier analysis: Foundations and advances II. Handbook of Production Economics, Volume 1, 371‑408.

Participants should make sure they have the Kumbhakar and Lovell (2000) book before the course starts; the cost of the book is not included in participation fee. The two chapters from the Handbook of Production Economics (Kumbhakar et al., 2022a,b) and other accompanying materials/paper will be distributed during the course.

Teaching methods

The following teaching methods are used:

• Lectures
• Problem solving sessions
• Tutorial videos

The course consists of theory and method sessions in the morning followed by an afternoon practicum session. The computer lab will include applications of the theory, computer analyses with actual data sets, and interpretations in practice. Applications to various economic examples will be considered such as agriculture, manufacturing, service industries, banking and finance, health and electrical power generation/distribution.

Mandatory course requirements

• Reading the course materials, attendance on at least 80% (4 days) of the courses lectured teaching, lab exercises. (The requirement for receiving 2 ECTS.)
• Submission of a term paper after the course. This should be like a full scientific paper. Maximum 8000 words. (The requirement for receiving additional 3 ECTS, 5 ECTS in total.)

Exam

Pass/Fail based on the course requirements above.

Target group and entry requirements

The course is oriented toward PhD candidates. However, postdoctoral researchers and others with background in economics can also attend this course. Doctoral students must document that they are currently registered at a PhD program at a business school. Participants should also have passed a Master of Science degree in Business Administration/Economics - or an equivalent degree. See information below for documentation.

Admission, fee and other expenses

Course fee and registration

The course fee is NOK 3.000 (Approx. 300 Euro). The course fee includes additional training material and coffee/tea. Lunches, dinners, accommodation and transportation costs to Lillehammer are not covered. The course is limited to 20 PhD-students. Internal PhD students from Inland Norway University of Applied Sciences are granted priority and free admission.

The registration takes place in to stages:

1. Please use this link to register and pay for the PhD course. Information on submission of your application along with the required documentation will be sent upon your pre-registration. Registration deadline: November 4^th 2022
2. After registered you will receive a link to the registration system FS. Registration deadline: November 11^th 2022