An extended Färe–Lovell technical efficiency measure

Walter Briec ()
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Walter Briec: UPVD - Université de Perpignan Via Domitia

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Abstract: Recently, Chambers et al. (Journal of Economic Theory 70 (1996) 407–419; Working Paper, Southern Illinois University, Carbondale, 1996) have developed the concept of directional distance to measure technical efficiency. However, there is no guarantee that such a measure must intersect the efficient subset (also called strong efficient subset) defined by Koopmans (Activity Analysis of Production and Allocation, 1951, Vol. 36, pp. 27–56), that is primarily the Pareto efficient subset. So, we develop a framework for measuring efficiency in the full input/output space. Following Färe and Lovell (Journal of Economic Theory 19 (1978) 150–162), we introduce a graph-type extension of the Russell measure. Moreover, we show that our new measure can be computed by using linear programming.

Date: 2000-04-20
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Published in International Journal of Production Economics, 2000, 65 (2), pp.191-199

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05623403

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