A problem with a practical application of Varian's Weak Axiom of Cost Minimization is that an observed violation may be due to random variation in the output quantities produced by firms rather than due to inefficiency on the part of the firm. In this paper, unlike in Varian (1985), the output...

In this paper we offer a simple exposition of the neoclassical production theoretic foundations of Data Envelopment Analysis. The concepts of technical efficiency (both input- and output-oriented), scale efficiency, and cost efficiency are explained and the corresponding DEA models are described...

Using the nonparametric approach of Data Envelopment Analysis (DEA), this paper examines firm’s heterogeneity in the Indian pharmaceutical industry by measuring their input and output efficiencies for the period 1991 to 2005. The analysis establishes that even though firms have been able to...

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...

Theoretical issues related to rationing and dual pricing have assumed importance for many developing countries where rationing of certain critical commodities at subsidized prices coexists with conventional unrestricted markets for the same commodities. This paper attempts to extend and...

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...

In this note we provide a derivation of the Leontief production function from the CES. Our derivation is in the same spirit as the derivation of the Cobb Douglas form.

In this paper, state-level input and output quantity data constructed from the Annual Survey of Industries, for the period 1986-7 through 1995-6 are analysed, to measure levels of technical efficiency for each state, for each of the sample years using the non-parametric method of Data...

In this paper we use the 2004-05 Annual Survey of Industries data to estimate the levels of cost efficiency of Indian manufacturing in the various states and also get state level measures of industrial organization (IO) efficiency. The empirical results show the presence of considerable cost...