Productivity and Efficiency Analysis

Jati Sengupta and Biresh Sahoo ()

Chapter 1 in Efficiency Models in Data Envelopment Analysis, 2006, pp 1-35 from Palgrave Macmillan

Abstract: Abstract Productivity and economic efficiency analysis has entered a new phase, since the data envelopment analysis (DEA) introduced a nonparametric method of measuring technical and allocative efficiency. The DEA efficiency models have three most interesting features, which have fostered numerous applications in several disciplines, for example, microeconomics, operations research, and econometrics. The first feature is the specification and estimation of a multi-output multi-input production frontier, which can be estimated without any price information. Second, the production frontiers can be estimated for public sector decision making units (DMUs) with observed input and output data only and every DMU can be compared in terms of its relative efficiency in respect of the whole group comprising all DMUs. Third, if the market data in the form of output and input prices are available, then the DEA model can be used to compute overall cost efficiency and allocative efficiency. Thus a cost frontier can be estimated along with a productive frontier. In a cost frontier, output technical inefficiency indicates the amount by which a firm or DMU can increase output, holding cost constant and input technical inefficiency captures the amount by which a firm can reduce costs, holding output constant.

Keywords: Data Envelopment Analysis; Mutual Fund; Data Envelopment Analysis Model; Balance Growth Path; Industrial Organization (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (13)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:palchp:978-0-230-59817-1_1

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230598171

DOI: 10.1057/9780230598171_1

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().