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A theoretical framework is developed for decomposing partial factor productivity and measuring technical inefficiency when the underlying technology is characterized by factor non-substitution. With Farrell’s (1957) radial index of technical inefficiency being inappropriate in this case,...
Persistent link: https://www.econbiz.de/10010597706
In this note we derive alternative weighting schemes that complement those of Färe and Zelenyuk (2003) for consistent aggregation of Farrell efficiencies when the technology exhibits (global) constant returns to scale.
Persistent link: https://www.econbiz.de/10011052595