Allocative efficiency of technically inefficient production units
AbstractWe discuss how to measure allocative efficiency without presuming technical efficiency. This is relevant when it is easier to introduce reallocations than improvements of technical efficiency. We compare the approach to the traditional one of assuming technical efficiency before measuring allocative efficiency. In particular, we develop necessary and sufficient conditions on the technology to ensure consistent measures and we give dual organizational interpretations of the approaches.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal European Journal of Operational Research.
Volume (Year): 168 (2006)
Issue (Month): 2 (January)
Contact details of provider:
Web page: http://www.elsevier.com/locate/eor
Other versions of this item:
- Bogetoft, Peter & Fare, Rolf, 1999. "Allocative Efficiency of Technically Inefficient Production Units," Unit of Economics Working papers 24217, Royal Veterinary and Agricultural University, Food and Resource Economic Institute.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Agrell, Per J. & Bogetoft, Peter & Tind, Jorgen, 2002. "Incentive plans for productive efficiency, innovation and learning," International Journal of Production Economics, Elsevier, vol. 78(1), pages 1-11, July.
- Niels Christian Petersen, 1990. "Data Envelopment Analysis on a Relaxed Set of Assumptions," Management Science, INFORMS, vol. 36(3), pages 305-314, March.
- Bogetoft, Peter, 1995. "Incentives and productivity measurements," International Journal of Production Economics, Elsevier, vol. 39(1-2), pages 67-77, April.
- Peter Bogetoft, 2000. "DEA and Activity Planning under Asymmetric Information," Journal of Productivity Analysis, Springer, vol. 13(1), pages 7-48, January.
- John McDonald, 1996. "Note: A Problem with the Decomposition of Technical Inefficiency into Scale and Congestion Components," Management Science, INFORMS, vol. 42(3), pages 473-474, March.
- Peter Bogetoft, 1996. "DEA on Relaxed Convexity Assumptions," Management Science, INFORMS, vol. 42(3), pages 457-465, March.
- Rolf Färe & Shawna Grosskopf, 2000. "Research Note. Decomposing Technical Efficiency with Care," Management Science, INFORMS, vol. 46(1), pages 167-168, January.
- Peter Bogetoft, 1994. "Incentive Efficient Production Frontiers: An Agency Perspective on DEA," Management Science, INFORMS, vol. 40(8), pages 959-968, August.
- Peter Bogetoft & Joseph M. Tama & Jørgen Tind, 2000. "Convex Input and Output Projections of Nonconvex Production Possibility Sets," Management Science, INFORMS, vol. 46(6), pages 858-869, June.
- Zofío, José Luis & Pastor, Jesús & Aparicio, Juan, 2010.
"The Directional Profit Efficiency Measure: On Why Profit Inefficiency is either Technical or Allocative,"
Working Papers in Economic Theory
2010/09, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
- Jose Zofio & Jesus Pastor & Juan Aparicio, 2013. "The directional profit efficiency measure: on why profit inefficiency is either technical or allocative," Journal of Productivity Analysis, Springer, vol. 40(3), pages 257-266, December.
- Bruno De Borger & Kristiaan Kerstens & Diego Prior & Ignace Van de Woestyne, 2013.
"Static efficiency decompositions and capacity utilization: integrating economic and technical capacity notions,"
Taylor & Francis Journals, vol. 45(24), pages 3529-3529, August.
- Bruno De Borger & Kristiaan Kerstens & Diego Prior & Ignace Van de Woestyne, 2012. "Static efficiency decompositions and capacity utilization: integrating economic and technical capacity notions," Applied Economics, Taylor & Francis Journals, vol. 44(31), pages 4125-4141, November.
- Van de Woestyne, Ignace & Kerstens, Kristiaan & Prior, Diego & De Borger, Bruno, 2009. "Static Efficiency Decompositions and Capacity Utilisation: Integrating Economic and Technical Capacity Notions," Working Papers 2009/30, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
- A. Mantovi, 2013. "Differential duality," Economics Department Working Papers 2013-EP05, Department of Economics, Parma University (Italy).
- Bogetoft, Peter & Wang, Dexiang, 1999. "Estimating the Potential Gains from Mergers: The Danish Agricultural Extension Services," Unit of Economics Working papers 24207, Royal Veterinary and Agricultural University, Food and Resource Economic Institute.
- Peter Bogetoft & Dexiang Wang, 2005.
"Estimating the Potential Gains from Mergers,"
Journal of Productivity Analysis,
Springer, vol. 23(2), pages 145-171, 05.
- Aparicio, Juan & Pastor, Jesús & Zofío, José Luis, 2013. "How to properly decompose economic efficiency using technical and allocative criteria with non-homothetic DEA technologies," Working Papers in Economic Theory 2013/11, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
- Aparicio, Juan & Borras, Fernando & Pastor, Jesus T. & Vidal, Fernando, 2013. "Accounting for slacks to measure and decompose revenue efficiency in the Spanish Designation of Origin wines with DEA," European Journal of Operational Research, Elsevier, vol. 231(2), pages 443-451.
- Andrea Mantovi, 2013. "On the commutativity of expansion and substitution effects," Journal of Economics, Springer, vol. 110(1), pages 83-105, September.
- A. Mantovi, 2013. "On the geometry of luxury," Economics Department Working Papers 2013-EP02, Department of Economics, Parma University (Italy).
- Fandel, Günter & Lorth, Michael, 2009. "On the technical (in)efficiency of a profit maximum," International Journal of Production Economics, Elsevier, vol. 121(2), pages 409-426, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.