We measure the capacity output of a firm as the maximum amount producible by a firm given a specific quantity of the quasi-fixed input and an overall expenditure constraint for its choice of variable inputs. We compute this indirect capacity utilization measure for the total manufacturing sector...

This study examines the relationship between stock market reaction to horizontal merger announcements and technical efficiency levels of the participating firms. The analysis is based on data pertaining to eighty mergers between firms in the U.S. manufacturing industry during the 1990s. We...

The dual cost function is partially super-additive when an output quantity bundle of a given quality can be produced at a lower cost by breaking up the output into a number of smaller bundles of the same quality to be produced by several firms instead of the entire bundle being produced by a...

Input congestion occurs at a given input bundle when the assumption of free disposability of inputs does not hold and an increase in input leads to a decline in output. In this paper we employ the nonparametric method of Data Envelopment Analysis (DEA) to examine the question on input congestion...

Using the directional distance function we study a cross section of 110 countries to examine the efficiency of management of the tradeoffs between pollution and income. The DEA model is reformulated to permit 'reverse disposability' of the bad output. Further, we interpret the optimal solution...

In this paper we propose a measure of the competitiveness index of one firm relative to another in the same industry. We also provide a decomposition procedure that relates the measured index of competitiveness to separate components capturing differences in cost efficiency, input prices, and...

This paper analyzes state level data from the manufacturing sector in India for the period 1986-87 to 1999-00 to study the efficiency dynamics of a ‘typical’ firm in individual states during the pre- and post reform years. Using the non-parametric method of Data Envelopment Analysis we...