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The method of comparing the regions using the technical efficiency estimates with account of production structure
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The method of comparing the regions using the technical efficiency estimates with account of production structure
Annotation
PII
S042473880000003-2-1
Publication type
Article
Status
Published
Authors
Sergey Aivazian 
Occupation: scientific director of the scientific direction of
Affiliation: CEMI RAS
Address: Russian Federation, Moscow
Alexander Kudrov
ORCID: 0000-0003-2495-5496
Occupation: senior researcher, CEMI RAS
Affiliation: CEMI RAS
Address: Russian Federation, Moscow, Michurinsky avenue, 37, app.186
Mikhail Afanasiev
Occupation: Professor, Central Economics and Mathematics Institute of the Russian Academy of Sciences
Affiliation: Institute of the Russian Academy of Sciences
Address: Russian Federation, Moscow, Nakhimovsky prosp. 47
Edition
Volume 54 Issue 1
Pages
43-51
Abstract
The author propose the method of ranking the regions’ economy using the technical efficiency estimates. It is assumed that such estimates can be theoretically justified using the production capacity model constructed for a group of regions with homogeneity properties. At the same time, technical efficiency evaluations are not comparable for the regions from different homogeneous groups. It is quite natural to build a common model for all the regions to obtain comparable estimates. However, the ranks of the estimates of technical efficiency for the regions of a certain group obtained from such a model do not necessarily correspond to the ranks of estimates obtained from the group model. In this case, the ranking of all the regions by estimates of the general model is not entirely correct. The method presented in this paper makes it possible, with the usage of the optimization model, to obtain corrected estimates that are minimally different from those obtained from the general model, whose ranks correspond to the ranks of the estimates obtained from group models. Based on the adjusted estimates, the main problem is solved – general rating is constructed, corresponding to the ratings of the regions of each homogeneous group.
Keywords
regional economy, econometric modeling, stochastic frontier, technical efficiency estimation
Acknowledgment
The work was supported by the Russian Science Foundation (project 17–18–01080).
Received
13.11.2018
Date of publication
14.11.2018
Number of purchasers
15
Views
2490
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References

1. Aivazian S.A., Afanasiev M.Yu. (2014). Development of Production Capacity on the Basis of the Stochastic Frontier Concept: Methodology and Results of Empirical Analysis. Moscow: KRASAND (in Russian).

2. Aivazian S.A., Afanasiev M.Yu., Kudrov A.V. (2016a). Models of Productive Capacity and Technological Efficiency Evaluations of Regions of the Russian Federation Concerning the Output Structure. Economics and Mathematical Methods, 52, 1, 28–44 (in Russian).

3. Aivazian S.A., Afanasiev M.Yu., Kudrov A.V. (2016b). Clusterization of Russian Regions Based on the Industry Production Structure. Applied Econometrics, 41, 24–46 (in Russian).

4. Aivazian S.A., Fantaccini D. (2014): Econometrics‑2. Moscow: Infra-M (in Russian).

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