Abstract

BECERRIL-TORRES, Osvaldo; ALVAREZ-AYUSO, Inmaculada  and  DEL MORAL-BARRERA, Laura. Technical efficiency of the federal states in Mexico. Econ. soc. territ [online]. 2010, vol.10, n.33, pp.485-511. ISSN 2448-6183.

The interest in having a measurement of the technical efficiency arises from the acceptance of the existence of a breach in the theoretical asemptions of the total technical efficiency and in the empirical reality, so there is opportunity to improve the output only optimizing the inputs. In this context, the objective of this academic research is to obtain an indicator of levels of technical efficiency that allows learning the relative position and temporary evolution in the federal states of Mexico in respect to its efficient frontier. In particular, the frontier of production is approached by means of the analysis of stochastic frontiers stated by Battese and Coelli. The general result permits indentifying that production might be broadened in circa 20%; likewise, a ranking of technical efficiency for the federal states of Mexico is made.

Keywords : stochastic production function; technical efficiency; analysis of stochastic frontiers; federal states.