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The validity of many efficiency measurement methods rely upon the assumption that variables such as input quantities and output mixes are independent of (or uncorrelated with) technical efficiency, however few studies have attempted to test these assumptions. In a recent paper, Wilson (2003)...
Persistent link: https://www.econbiz.de/10004973589
In this paper it is shown that a well known procedure (GEKS) of transitivizing a bilateral system of productivity comparisons is implicitly a way of imposing a homothetic structure onto the data. The main implication of this result is that deviations between the bilateral and the multilateral...
Persistent link: https://www.econbiz.de/10010866040
A primal index of productivity change is introduced which decomposes exactly into three components: technical change, technical efficiency change and average scale economies (radial scale change). The productivity index is defined using variations of the distance function along pre-assigned...
Persistent link: https://www.econbiz.de/10010988852
Directional Distance Functions (DDFs) are becoming a popular way of measuring efficiency as they encompass the Shephard output and input distance functions as special cases. However, the most critical and still unsolved issue related to DDF remains the selection of the direction along which to...
Persistent link: https://www.econbiz.de/10010549683
Summary This study explores the patterns of technological capabilities for a sample of 42 countries over the period 1995-2007, introducing a novel methodological approach. We exploit duality between Data Envelopment Analysis and composite indicators to address the inconsistency between the two...
Persistent link: https://www.econbiz.de/10009146199
An efficiency indicator of industry configuration (allowing for entry/exit of firms) is presented which accounts for four sources components: (1) size inefficiencies arising from firms which can be conveniently split into smaller units; (2) efficiency gains realized through merger of firms; (3)...
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