Technical efficiency bias caused by intra-input aggregation in data envelopment analysis

Darold Barnum and John Gleason

Applied Economics Letters, 2005, vol. 12, issue 13, 785-788

Abstract: The study shows that technical efficiency scores in Data Envelopment Analysis are biased by linear aggregation of the quantities of the same type of input that are used by all outputs (intra-input aggregation). Fare et al. 's (2004) models are expanded to account for this additional bias, and the extent of its impact on reported technical efficiency scores is commented on.

Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:12:y:2005:i:13:p:785-788

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DOI: 10.1080/13504850500365624

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