Deterministic parametric and nonparametric estimation of efficiency in service production: A comparison

Abstract The purpose of this study is to analyse productive efficiency in about 400 local social insurance offices of the Swedish social insurance system for the period 1974–1984. The analysis is based on parametric and nonparametric deterministic frontiers. The general results are that the efficiency is around 0.8 and that the differences between the approaches are supprisingly small.