EconPapers    
Economics at your fingertips  
 

Decomposition of technical efficiency under fixed proportion technologies: an application of data envelopment analysis

Viera Mendelová ()
Additional contact information
Viera Mendelová: Matej Bel University Banská Bystrica

Journal of Productivity Analysis, 2022, vol. 57, issue 1, No 1, 22 pages

Abstract: Abstract The paper deals with the technical efficiency evaluation under the fixed proportion technologies (FPTs) assumption where nonsubstitutable inputs and outputs are present. The recent research has shown that the conventional data envelopment analysis (DEA) models used for FPTs are biased, and when inputs and outputs are not substituted for either technological or other reasons, the models that account for nonsubstitutability need to be employed. This paper discusses a technical efficiency decomposition under FPTs and proposes two new models for quantification of contribution of various sources to overall inefficiency. The first model, called the calculation-based model, is a purely parametric model for efficiency decomposition, whereas the second model, called the adjusted CCR model, is a combination of parametric and nonparametric DEA approach. Using the models presented in the paper, the overall efficiency measure is decomposed into three main components: Farrell efficiency component, input mix efficiency component and output mix efficiency component. The selected estimators, some of them newly developed, are compared with the true efficiency levels via Monte Carlo simulations to measure the accuracy of the models. The results demonstrate that the proposed models provide sufficiently reliable results and in terms of overall efficiency are comparable with existing models for measuring efficiency in FTP conditions.

Keywords: Efficiency measurement; Nonsubstitutable inputs; Nonsubstitutable outputs; Sources of technical inefficiency; Mix efficiency (search for similar items in EconPapers)
JEL-codes: C14 C61 D24 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s11123-021-00617-w Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jproda:v:57:y:2022:i:1:d:10.1007_s11123-021-00617-w

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11123/PS2

DOI: 10.1007/s11123-021-00617-w

Access Statistics for this article

Journal of Productivity Analysis is currently edited by William Greene, Chris O'Donnell and Victor Podinovski

More articles in Journal of Productivity Analysis from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2022-10-22
Handle: RePEc:kap:jproda:v:57:y:2022:i:1:d:10.1007_s11123-021-00617-w