Symmetric decompositions of cost variation

Bert Balk and José Zofío

European Journal of Operational Research, 2020, vol. 285, issue 3, 1189-1198

Abstract: In this paper a number of symmetric, empirically implementable decompositions of the cost variation (in difference and ratio form) of a production unit are developed. The components distinguished are price level change, technical efficiency change, allocative efficiency change, technological change, scale of activity change, and price structure change. Given data from a (balanced) panel of production units, all the necessary ingredients for the computation of the various decompositions can be obtained by using linear programming techniques (DEA). An application is provided.

Keywords: Productivity and competitiveness; Cost variation; Decomposition; Efficiency change; Technological change (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:285:y:2020:i:3:p:1189-1198

DOI: 10.1016/j.ejor.2020.02.034

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