Congestion in the Chinese automobile and textile industries revisited
AbstractThis paper re-examines a problem of congested inputs in the Chinese automobile and textile industries, which was identified by Cooper etÂ al. [Cooper WW, Deng H, Gu B, Li S, Thrall RM. Using DEA to improve the management of congestion in Chinese industries (1981-1997). Socio-Economic Planning Sciences 2001;35:227-242]. Since these authors employed a single approach in measuring congestion, it is worth exploring whether alternative procedures would yield very different outcomes. Indeed, the measurement of congestion is an area where there has been much theoretical debate but relatively little empirical work. After examining the theoretical properties of the two main approaches currently available, those of Färe etÂ al. [Färe R, Grosskopf S, Lovell CAK. The measurement of efficiency of production. Boston: Kluwer-Nijhoff; 1985] and Cooper etÂ al., we use the data set assembled by Cooper etÂ al. for the period 1981-1997 to compare and contrast theÂ measurements of congestion generated by these alternative approaches. We find that the results are strikingly different, especially in terms of the amount of congestion identified. Finally, we discuss the new approach to measuring congestion proposed by Tone andÂ Sahoo [Tone K, Sahoo BK. Degree of scale economies and congestion: a unified DEA approach. European Journal of Operational Research 2004;158:755-772].
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Bibliographic InfoArticle provided by Elsevier in its journal Socio-Economic Planning Sciences.
Volume (Year): 43 (2009)
Issue (Month): 3 (September)
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Data envelopment analysis Congestion Inefficiency;
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- Cherchye, Laurens & Kuosmanen, Timo & Post, Thierry, 2001. "Alternative treatments of congestion in DEA: A rejoinder to Cooper, Gu, and Li," European Journal of Operational Research, Elsevier, vol. 132(1), pages 75-80, July.
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- Noura, A.A. & Hosseinzadeh Lotfi, F. & Jahanshahloo, G.R. & Rashidi, S. Fanati & Parker, Barnett R., 2010. "A new method for measuring congestion in data envelopment analysis," Socio-Economic Planning Sciences, Elsevier, vol. 44(4), pages 240-246, December.
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