The Loss Distance Function: Economic Inefficiency Decompositions

Jesús T. Pastor, Juan Aparicio and José Zofío
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Jesús T. Pastor: Universidad Miguel Hernandez de Elche

Chapter Chapter 10 in Benchmarking Economic Efficiency, 2022, pp 399-414 from Springer

Abstract: Abstract From the beginning of DEA as a well-defined multi-output-multi-input tool for measuring efficiency, a huge number of technical efficiency measures have been introduced in the literature. Each of them implements a different way of gauging the “distance” from a firm in the interior of the technology to its efficient frontier (radially, hyperbolically, through additive slacks, following a reference directional vector, etc.). Probably, the existence of a wide range of different measures was the cause of encouraging certain researchers to introduce general frameworks that encompass all or most or the DEA technical efficiency measures.

Date: 2022
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DOI: 10.1007/978-3-030-84397-7_10

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