Investment and dynamic DEA
AbstractA dynamic version of Data Envelopment Analysis (DEA) is developed in the present paper. Our model introduces investment in traditional DEA and imposes intertemporal cost minimization. Adding an intertemporal adjustment constraint into the cost minimization problem, we derive the relation between the DEA variables of the cost function and those of the primary production frontiersâ coefficients. The augmented DEA model can be solved using standard linear programming. This dynamic framework enables computing the production frontiers, measuring the productive efficiencies and evaluating the potential economies all in the presence of adjustment costs.
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Bibliographic InfoArticle provided by Springer in its journal Journal of Productivity Analysis.
Volume (Year): 29 (2008)
Issue (Month): 3 (June)
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Web page: http://www.springerlink.com/link.asp?id=100296
Adjustment cost; Data envelopment analysis; Efficiency; Multiple outputs/inputs; Quasi-fixed inputs; D24; L23;
Other versions of this item:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
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.:
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- Pierre Lasserre & Pierre Ouellette, 1999.
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Cahiers de recherche du DÃ©partement des sciences Ã©conomiques, UQAM
9908, Université du Québec à Montréal, Département des sciences économiques.
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- Elvira Silva & Spiro E. Stefanou, 2007. "Dynamic Efficiency Measurement: Theory and Application," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 398-419.
- Elvira Silva & Spiro Stefanou, 2003. "Nonparametric Dynamic Production Analysis and the Theory of Cost," Journal of Productivity Analysis, Springer, vol. 19(1), pages 5-32, January.
- Kao, Chiang, 2013. "Dynamic data envelopment analysis: A relational analysis," European Journal of Operational Research, Elsevier, vol. 227(2), pages 325-330.
- Elvira Silva & Alfons Oude Lansink, 2013. "Dynamic Efficiency Measurement: A Directional Distance Function Approach," CEF.UP Working Papers 1307, Universidade do Porto, Faculdade de Economia do Porto.
- Pierre Ouellette & Valérie Vierstraete, 2008. "Malmquist indexes with quasi-fixed inputs: An application to school districts in Québec," Cahiers de recherche 08-25, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
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