A toolbox for measuring heterogeneity and efficiency using zonotopes

Marco Grazzi, Marco Cococcioni, Le Li, Federico Ponchio

Research output: Contribution to journalArticle

Abstract

In this work, we describe the new command zonotope, which, by resorting to a geometry-based approach, provides a measure of productivity that fully accounts for the existing heterogeneity across firms within the same industry. The method we propose also enables assessment of the extent of multidimensional heterogeneity with applications to fields beyond that of production analysis. Finally, we detail the functioning of the software to perform the related empirical analysis, and we discuss the main computational issues encountered in its development.
Original languageEnglish
Pages (from-to)25-59
Number of pages35
JournalTHE STATA JOURNAL
Volume22
DOIs
Publication statusPublished - 2022

Keywords

  • heterogeneity measures
  • multivariate Gini coefficient
  • production analysis
  • st0662
  • zonotope

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