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:
- Pierre Ouellette & Li Yan, 2006. "Investment and Dynamic DEA," RePAd Working Paper Series, DÃ©partement des sciences administratives, UQO UQO-DSA-wp012006, DÃ©partement des sciences administratives, UQO.
- 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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Cahiers de recherche du DÃ©partement des sciences Ã©conomiques, UQAM, UniversitÃ© du QuÃ©bec Ã MontrÃ©al, DÃ©partement des sciences Ã©conomiques
9908, UniversitÃ© du QuÃ©bec Ã MontrÃ©al, DÃ©partement des sciences Ã©conomiques.
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