Short-run and long-run efficiency measures for multiplant firms

Chiang Kao

Annals of Operations Research, 2000, vol. 97, issue 1, 379-388

Abstract: The usual Data Envelopment Analysis (DEA) model for measuring the relative efficiency assumes that all plants belong to distinct firms superior to them. For firms with more than one plant, Koopmans proposes a procedure for deriving the short-run production frontier for each firm. Modifying his idea, a DEA model is constructed in this paper for measuring the short-run efficiency of each plant within a firm. Based on the theory of production economics that the long-run production frontier is an envelop super-imposed upon all short-run production frontiers, another DEA model is constructed to measure the long-run efficiency of every plant. The long-run efficiency is always smaller than or equal to the short-run efficiency. Consequently, it is possible that an inefficient plant can only be improved in the long-run. With the models constructed in this paper, a decision-maker is able to distinguish between what can be achieved in the short-run and what in the long-run. To clarify the idea, an example of Taiwan forests is adopted for illustration. Copyright Kluwer Academic Publishers 2000

Keywords: data envelopment analysis; efficiency; long-run; short-run (search for similar items in EconPapers)
Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1023/A:1018928324737 (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:spr:annopr:v:97:y:2000:i:1:p:379-388:10.1023/a:1018928324737

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10479

DOI: 10.1023/A:1018928324737

Access Statistics for this article

Annals of Operations Research is currently edited by Endre Boros

More articles in Annals of Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().