VALUE AND QUANTITY DATA IN ECONOMIC AND TECHNICAL EFFICIENCY MEASUREMENT

Maria Conceição Portela ()
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Maria Conceição Portela: Faculdade de Economia e Gestão, Universidade Católica Portuguesa - Porto
Authors registered in the RePEc Author Service: Maria CA Silva

No 3, Working Papers de Economia (Economics Working Papers) from Católica Porto Business School, Universidade Católica Portuguesa

Abstract: This paper calls attention to the implications of using cost or revenue data in efficiency measurement through Data Envelopment Analysis (DEA). In many empirical settings this issue arises, since frequently input and/or output quantities or prices are not available, and only value measures are available. When value data are used in technical efficiency models it is clearly questionable what sort of efficiency measure is being computed, since it cannot be a productive efficiency measure (that takes into account only quantities of inputs and outputs), and it cannot be either a traditional cost or revenue efficiency measure (that considers prices of factors disagregated from quantities). In this paper we call the attention for this fact and address situations where only value data are available, and situations where for some inputs (outputs) there is quantity information and for others there is value information. The main contribution of this paper is a reconciliation of previous literature on analysing these issues and on providing some guidelines on what to do and not do, when these issues arise in a data set.

Keywords: Data Envelopment Analysis; cost efficiency; revenue efficiency (search for similar items in EconPapers)
Pages: 13 pages
Date: 2013-09
New Economics Papers: this item is included in nep-eff
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Related works:
Journal Article: Value and quantity data in economic and technical efficiency measurement (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:cap:wpaper:032013

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