Distinguishing technical and scale efficiency on non-convex and convex technologies: theoretical analysis and empirical illustrations

Kristiaan Kerstens and Philippe Vanden Eeckaut

No 1998055, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: This paper defines a decomposition of technical efficiency for a series of nonparametric deterministic reference technologies related to the Free Disposal Hull. More specifically, introducing several returns to scale assumptionsinto this non-convex production model allows one to distinguish between technical and scale inefficiencies.These technologies and the resulting efficiency decomposition are illustrated with several data sets and contrasted with results based on the traditional, convex Data Envelopment Analysis models. In particular, data on UK rates departments are extensively analysed. Furthermore, samples of French urban transit companies and of Belgian municipalities serve to verify certain empirical regularities.

Keywords: Decomposition of technical efficiency; FDH; DEA (search for similar items in EconPapers)
JEL-codes: D24 (search for similar items in EconPapers)
Date: 1998-06-01
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:1998055

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