Information theory approach in efficiency measurement

Jati K. Sengupta

Applied Stochastic Models and Data Analysis, 1994, vol. 10, issue 2, 91-102

Abstract: The current non–parametric method of measuring productive efficiency of input–output systems is generalized here in the stochastic case in terms of an information theory approach based on the concept of entropy. Use of maximum entropy as a method of finding the most probable distribution of the input–output data set and as a predictive criterion is illustrated for production systems with multiple inputs and outputs.

Date: 1994
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Persistent link: https://EconPapers.repec.org/RePEc:wly:apsmda:v:10:y:1994:i:2:p:91-102

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