Temporal Technical and Profit Efficiency Measurement: Definitions, Duality and Aggregation Results

Walter Briec, Christine Comes and Kristiaan Kerstens
Additional contact information
Walter Briec: JEREM, University of Perpignan
Christine Comes: Groupe AZUR GMF, Paris

No 2005-ECO-01, Working Papers from IESEG School of Management

Abstract: The shortage function, an important tool in production theory, measures potential increases in outputs and decreases in inputs for a given direction g at a given date. To develop a temporal version of technical efficiency measurement, we introduce the concept of a temporal shortage function. This temporal efficiency measure is easily computed using linear programming. We also establish a duality result stating that the temporal profit function and the temporal shortage function are dual to one another. This result has two consequences. First, one can derive a shadow price path via the shadow prices of the temporal shortage function. Second, transposing the classic Farrell inefficiency decomposition, temporal profit efficiency is decomposed into temporal technical and temporal allocative efficiency components. Finally, in line with the recent literature on aggregation over firms, this contribution treats the possibilities and limits of the aggregation of efficiency measures over time.

Keywords: Temporal shortage function; temporal profit function; aggregation over time (search for similar items in EconPapers)
Pages: 26 pages
Date: 2005-05
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in International Journal of Production Economics, September 2006, 103(1), pp. 48-63

Downloads: (external link)
http://my.ieseg.fr/bienvenue/DownloadDoc.asp?Fich= ... 1_Briec_Comes_KK.pdf First version, 2005 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 FORBIDDEN (http://my.ieseg.fr/bienvenue/DownloadDoc.asp?Fich=44045475_2005-ECO-1_Briec_Comes_KK.pdf [301 Moved Permanently]--> https://my.ieseg.fr/bienvenue/DownloadDoc.asp?Fich=44045475_2005-ECO-1_Briec_Comes_KK.pdf [301 Moved Permanently]--> https://iesegnet.sharepoint.com/sites/Intranet-Home/bienvenue/DownloadDoc.asp?Fich=44045475_2005-ECO-1_Briec_Comes_KK.pdf)

Related works:
Journal Article: Temporal technical and profit efficiency measurement: Definitions, duality and aggregation results (2006)
Working Paper: Temporal technical and profit efficiency measurement: Definitions, duality and aggregation results (2006)
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:ies:wpaper:e200501

Access Statistics for this paper

More papers in Working Papers from IESEG School of Management Contact information at EDIRC.
Bibliographic data for series maintained by Lies BOUTEN ().