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The Dynamic Production Axioms and System Dynamics Behaviors: The Foundation for Future Integration

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  • Warren Vaneman
  • Konstantinos Triantis

Abstract

Realistically, organizational and/or system performance is dynamic and non-linear. However, in the efficiency literature, system performance is frequently evaluated considering linear combinations of the input/output variables and without explicitly taking into account the causes of efficiency behavior nor the dynamic behavior of systems. Policy decisions based on these results may be sub-optimized because the non-linear relationships among variables, causal relationships, and feedback mechanisms are ignored. This research takes the initial step of evaluating system performance in a dynamic environment, by relating the factors that effect system performance to the policies that govern it. To accomplish this, this paper extends the concepts of the static production axioms into a dynamic realm, where inputs are not instantaneously converted into outputs. The relationships of these new dynamic production axioms to the basic behaviors associated with system dynamics structures are explored. Copyright Kluwer Academic Publishers 2003

Suggested Citation

  • Warren Vaneman & Konstantinos Triantis, 2003. "The Dynamic Production Axioms and System Dynamics Behaviors: The Foundation for Future Integration," Journal of Productivity Analysis, Springer, vol. 19(1), pages 93-113, January.
    • Handle: RePEc:kap:jproda:v:19:y:2003:i:1:p:93-113
    DOI: 10.1023/A:1021878205513
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    References listed on IDEAS

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    1. Takayama,Akira, 1985. "Mathematical Economics," Cambridge Books, Cambridge University Press, number 9780521314985.
    2. Fare, Rolf & Knox Lovell, C. A., 1978. "Measuring the technical efficiency of production," Journal of Economic Theory, Elsevier, vol. 19(1), pages 150-162, October.
    3. Ragnar Frisch, 1936. "On the Notion of Equilibrium and Disequilibrium," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 3(2), pages 100-105.
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    Cited by:

    1. Pillay, N.S. & Brent, A.C. & Musango, J.K., 2019. "Affordability of battery electric vehicles based on disposable income and the impact on provincial residential electricity requirements in South Africa," Energy, Elsevier, vol. 171(C), pages 1077-1087.
    2. Stefanou, Spiro E., 2009. "A Dynamic Characterization of Efficiency," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 10(1), pages 1-16.
    3. Saeideh Fallah-Fini & Konstantinos Triantis & Andrew Johnson, 2014. "Reviewing the literature on non-parametric dynamic efficiency measurement: state-of-the-art," Journal of Productivity Analysis, Springer, vol. 41(1), pages 51-67, February.
    4. Francis L. Dougherty & Nathaniel P. Ambler & Konstantinos P. Triantis, 2017. "A complex adaptive systems approach for productive efficiency analysis: building blocks and associative inferences," Annals of Operations Research, Springer, vol. 250(1), pages 45-63, March.
    5. Herrera-Restrepo, Oscar & Triantis, Konstantinos, 2019. "Enterprise design through complex adaptive systems and efficiency measurement," European Journal of Operational Research, Elsevier, vol. 278(2), pages 481-497.
    6. Macpherson, Alexander J. & Principe, Peter P. & Smith, Elizabeth R., 2010. "A directional distance function approach to regional environmental-economic assessments," Ecological Economics, Elsevier, vol. 69(10), pages 1918-1925, August.

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