Economics of scale and cost efficiencies: A panel-data stochastic-frontier analysis of real estate investment trusts

Manchester School

Volumn 74, Issue 4, 2006, Pages 483-499

  Miller, Stephen M ^a   Clauretie, Terrence M ^a   Springer, Thomas M ^b  

^a UNIVERSITY OF NEVADA   (United States)

^b CLEMSON UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 33745155392     PISSN: 14636786     EISSN: 14679957     Source Type: Journal    
DOI: 10.1111/j.1467-9957.2006.00505.x     Document Type: Article

References (40)

1. Afriat, S. N. (1972). 'Efficiency Estimation of Production Functions', International Economic Review, Vol. 13, pp. 568-598.
2. Aigner, D. J. and Chu, S. F. (1968). 'On Estimating the Industry Production Function', American Economic Review, Vol. 58, pp. 826-839.
3. Aigner, D. J., Lovell, C. A. K. and Schmidt, P. (1977). 'Formulation and Estimation of Stochastic Frontier Function Models', Journal of Econometrics, Vol. 6, pp. 21-37.
4. Ambrose, B. W. and Linneman, P. (2001). 'REIT Organizational Structure and Operating Characteristics', Journal of Real Estate Research, Vol. 21, pp. 141-162.
5. Ambrose, B. W. and Pennington-Cross, A. (2000). 'Economies of Scale on Multi-product Firms: the Case of REITs', Working Paper, Real Estate Research Institute, Bloomington, IN.
6. Ambrose, B. W., Highfield, M. J. and Linneman, P. (2005). 'Real Estate and Economies of Scale: the Case of REITs', Real Estate Economics, Vol. 33, pp. 323-350.
7. Anderson, R. I. and Springer, T. M. (2003). 'REIT Selection and Portfolio Construction: Using Operating Efficiency as an Indicator of Performance', Journal of Real Estate Portfolio Management, Vol. 9, pp. 17-28.
8. Anderson, R. I., Lewis, D. and Springer, T. M. (2000). 'Operating Efficiencies in Real Estate: a Review of the Literature', Journal of Real Estate Literature, Vol. 8, pp. 3-20.
9. Anderson, R. I., Springer, T. M., Fok, R. and Webb, I R. (2002). Technical Efficiencies and Economies of Scale: a Nonparametric Analysis of REIT Operating Efficiency', European Journal of Operational Research, Vol. 139, pp. 598-612.
10. Banker, R. D. and Maindiratta, A. (1992). 'Maximum Likelihood Estimation on Monotone and Concave Production Frontiers', Journal of Productivity Analysis, Vol. 3, pp. 401-415.
11. Battese, G. E. and Coelli, T. J. (1992). 'Frontier Production Functions, Technical Efficiency, and Panel Data: with Applications to Paddy Farmers in India', Journal of Productivity Analysis, Vol. 3, pp. 153-169.
12. Battese, G. E. and Coelli, T. J. (1995). 'A Model of Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data', Empirical Economics, Vol. 20, pp. 325-332.
13. Bauer, P. W. (1990). 'Recent Developments in the Econometric Estimation of Frontiers', Journal of Econometrics, Vol. 46, pp. 39-56.
14. Berger, A. N. and Humphrey, D. B. (1991). 'The Dominance of Inefficiencies over Scale and Product Mix Economies in Banking', Journal of Monetary Economics, Vol. 28, pp. 117-148.
15. Bers, M. and Springer, T. M. (1997). 'Economies-of-scale for Real Estate Investment Trusts', Journal of Real Estate Research, Vol. 14, pp. 275-290.
16. Bers, M. and Springer, T. M. (1998a). 'Sources of Scale Economies for Real Estate Investment Trusts', Real Estate Finance, Vol. 14, pp. 47-56.
17. Bers, M. and Springer, T. M. (1998b). 'Differences in Scale Economies among Real Estate Investment Trusts: More Evidence', Real Estate Finance, Vol. 15, pp. 37-44.
18. van den Broek, J., Førsund, F. R., Hjalmarsson, L. and Meeusen, W. (1980). 'On the Estimation of Deterministic and Stochastic Frontier Production Functions', Journal of Econometrics, Vol. 13, pp. 117-138.
19. Capozza, D. R. and Seguin, P. J. (2000). 'Debt, Agency and Management Contracts in REITs: the External Advisor Puzzle', Journal of Real Estate Finance and Economics, Vol. 20, pp. 91-116.
20. Coelli, T. J. (1996). A Guide to FRONTIER Version 4.1: a Computer Program for Stochastic Frontier Production and Cost Function Estimation', CEPA Working Paper 97/07, Center for Efficiency and Productivity Analysis, University of New England, Armidale.
21. Cornwell, C., Schmidt, P. and Sickles, R. C. (1990). 'Production Frontier with Cross-sectional and Times-series Variation in Efficiency Levels', Journal of Econometrics, Vol. 46, pp. 185-200.
22. Cowing, T. G., Reifschneider, D. and Stevenson, R. E. (1983). A Comparison of Alternative Frontier Cost Function Specifications', in A. Dogramaci (ed.), Developments in Econometric Analyses of Productivity, Boston, MA, Kluwer-Nijhoff, pp. 63-91.
23. Farrell, M. J. (1957). 'The Measurement of Productive Efficiency', Journal of the Royal Statistical Society, Series A, Vol. 120, pp. 253-281.
24. Førsund, F. R., Lovell, C. A. K. and Schmidt, P. (1980). A Survey of Frontier Production Functions and of their Relationship to Efficiency Measurement', Journal of Econometrics, Vol. 13, pp. 5-25.
25. Greene, W. H. (1990). A Gamma-distributed Stochastic Frontier Model', Journal of Econometrics, Vol. 46, pp. 141-163.
26. Jensen, M. C. (1986). Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers', American Economic Review, Papers and Proceedings, Vol. 76, pp. 323-329.
27. Jondrow, J., Lovell, C. A. K., Materov, I. S. and Schmidt, P. (1982). 'On the Estimation of Technical Inefficiency in the Stochastic Frontier Production Function Model', Journal of Econometrics, Vol. 19, pp. 233-238.
28. Kumbhakar, S. C. (1990). 'Production Frontiers, Panel Data, and Time Varying Technical Inefficiency', Journal of Econometrics, Vol. 27, pp. 201-211.
29. Lawrence, C. (1989). 'Banking Costs, Generalized Functional Forms, and Estimation of Economies of Scale and Scope', Journal of Money, Credit and Banking, Vol. 21, pp. 368-379.
30. Lewis, D., Springer, T. M. and Anderson, R. (2003). The Cost Efficiency of Real Estate Investment Trusts: an Analysis with a Bayesian Frontier Model', Journal of Real Estate Finance and Economics, Vol. 26, pp. 65-80.
31. Linneman, P. (1997). 'Forces Changing the Real Estate Industry Forever', Wharton Real Estate Review, Vol. 1, pp. 1-12.
32. Meeusen, W. and van den Broek, J. (1977). 'Efficiency Estimation from Cobb-Douglas Production Functions with Composite Errors', International Economic Review, Vol. 18, pp. 435-444.
33. Noulas, A. G., Ray, S. C. and Miller, S. M. (1990). 'Returns to Scale and Input Substitution for Large U.S. Banks', Journal of Money, Credit and Banking, Vol. 22, pp. 94-108.
34. Noulas, A. G., Miller, S. M. and Ray, S. C. (1993). 'Economies and Diseconomies of Scope in Large-sized U.S. Banks', Journal of Financial Services Research, Vol. 7, pp. 235-248.
35. Richmond, J. (1974). 'Estimating the Efficiency of Production', International Economic Review, Vol. 15, pp. 515-521.
36. Sagalyn, L. B. (1996). 'Conflicts of Interest in the Structure of REITs', Real Estate Finance, Vol. 9, No. 2, pp. 34-51.
37. Schmidt, P. (1985-86). 'Frontier Production Functions', Econometric Reviews, Vol. 4, pp. 289-328.
38. Stigler, G. J. (1976). 'The Xistence of X-efficiency', American Economic Review, Vol. 66, pp. 213-238.
39. Timmer, C. P. (1971). 'Using a Probabilistic Frontier Function to Measure Technical Efficiency', Journal of Political Economy, Vol. 79, pp. 776-794.
40. Vogel, J. H., Jr (1997). 'Why the New Conventional Wisdom about REITs is Wrong', Real Estate Finance, Vol. 14, pp. 7-12.