Quality and its Impact on Efficiency
Cinzia Daraio (),
Leopold Simar () and
Paul Wilson ()
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Cinzia Daraio: Department of Computer, Control and Management Engineering Antonio Ruberti (DIAG), University of Rome La Sapienza, Rome, Italy
No 2019-01, DIAG Technical Reports from Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza"
The issue of quality and its relationship with efficiency and performance is a crucial operational issue in many fields of study including production economics, operations research, engineering and business management. In this paper we provide a methodology for identifying latent quality factors, estimate their statistical significance and analyze their impact on the performance of the production process. This methodology is based on up-to-date computational methods and statistical tests for directional distances. We illustrate the approach using real data to evaluate the performance of European Universities.
Keywords: nonparametric efficiency; performance assessment; quality; benchmarking; directional distances; conditional efficiency; observed and unobserved heterogeneity; separability condition; European universities (search for similar items in EconPapers)
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Working Paper: Quality and its Impact on Efficiency (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:aeg:report:2019-01
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