A Note on Measuring Technical Efficiency

Loren W. Tauer

No 186655, Staff Papers from Cornell University, Department of Applied Economics and Management

Abstract: I argue that much of what researchers have been measuring as technical inefficiency may be allocative inefficiency. When inputs are aggregated it is shown that any allocative inefficiency is manifested as technical inefficiency. Greater degrees of aggregation may produce lower measures of technical efficiency.

Keywords: Productivity Analysis; Research and Development/Tech Change/Emerging Technologies (search for similar items in EconPapers)
Pages: 16
Date: 1987-06
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Persistent link: https://EconPapers.repec.org/RePEc:ags:cudasp:186655

DOI: 10.22004/ag.econ.186655

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