Semi-radial technical efficiency measurement
AbstractSemi-radial efficiency measurement combines technical efficiency, as captured by the classical Farrell measure, with an economically meaningful mix efficiency component. The semi-radial evaluation we propose proceeds in two steps. First, we build on the price interpretation of the generally accepted Koopmans efficiency notion to characterize appropriate benchmarks. Next, we present both a quantity-based distance measure and its dual (price-based) equivalent to evaluate the mix efficiency factor. The type of measures we propose may, e.g., be used to provide a price rationale for the Zieschang technical efficiency evaluation procedure.
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Bibliographic InfoArticle provided by Elsevier in its journal European Journal of Operational Research.
Volume (Year): 193 (2009)
Issue (Month): 2 (March)
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Web page: http://www.elsevier.com/locate/eor
Koopmans technical efficiency Farrell measure Indication problem Mix efficiency Shadow price interpretation Data envelopment analysis;
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