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A new criterion for technical efficiency measures: non-monotonicity across dimensions axioms

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Author Info
Kristiaan Kerstens (LABORES, Université Catholique de Lille, Lille, France)
Philippe Vanden Eeckaut (Institut de Statistique, Université Catholique de Louvain, Louvain-la-Neuve, Belgium)

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Abstract

Based on non-parametric deterministic production technologies radial and non-radial measures of technical efficiency are evaluated using properties guaranteeing insensitivity to the dimensionality of technology. These new axioms are important in empirical research and may especially prevent manipulation of results when implementing these benchmark methodologies in private or public organizations. An empirical example illustrates to which extent a series of radial and non-radial technical efficiency measures satisfies the proposed axioms. Copyright © 1999 John Wiley & Sons, Ltd.

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Publisher Info
Article provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.

Volume (Year): 20 (1999)
Issue (Month): 1 ()
Pages: 45-59
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Handle: RePEc:wly:mgtdec:v:20:y:1999:i:1:p:45-59

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976

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  1. Berger, Allen N. & Leusner, John H. & Mingo, John J., 1997. "The efficiency of bank branches," Journal of Monetary Economics, Elsevier, vol. 40(1), pages 141-162, September. [Downloadable!] (restricted)
    Other versions:
  2. KERSTENSÊ, Kristiaan & VANDEN EECKAUT, Philippe, 1998. "Distinguising technical and scale efficiency on non-convex and convex technologies: theoretical analysis and empirical illustrations," CORE Discussion Papers 1998055, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE). [Downloadable!]
  3. Chu, Xuehao & Fielding, Gordon J. & Lamar, Bruce W., 1992. "Measuring transit performance using data envelopment analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 26(3), pages 223-230, May. [Downloadable!] (restricted)
  4. Newhouse, Joseph P., 1994. "Frontier estimation: How useful a tool for health economics?," Journal of Health Economics, Elsevier, vol. 13(3), pages 317-322, October. [Downloadable!] (restricted)
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  6. Viton, Philip A., 1997. "Technical efficiency in multi-mode bus transit: A production frontier analysis," Transportation Research Part B: Methodological, Elsevier, vol. 31(1), pages 23-39, February. [Downloadable!] (restricted)
  7. KERSTENSÊ , Kris & VANDENÊEECKAUTÊ, Philippe, 1995. "Technical Efficiency Measures on DEA and FDH : A Reconsideration of the Axiomatic Literature," CORE Discussion Papers 1995013, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  8. Varian, Hal R, 1984. "The Nonparametric Approach to Production Analysis," Econometrica, Econometric Society, vol. 52(3), pages 579-97, May. [Downloadable!] (restricted)
  9. Kittelsen, S.A.C., 1993. "Stepwise DEA; Choosing Variables for Measuring Technical Efficiency in Norwegian Electricity Distribution," Memorandum 06/1993, Oslo University, Department of Economics.
  10. Robert Russell, R., 1985. "Measures of technical efficiency," Journal of Economic Theory, Elsevier, vol. 35(1), pages 109-126, February. [Downloadable!] (restricted)
  11. Breyer, Friedrich, 1987. "The specification of a hospital cost function : A comment on the recent literature," Journal of Health Economics, Elsevier, vol. 6(2), pages 147-157, June. [Downloadable!] (restricted)
  12. Banker, R. D. & Charnes, A. & Cooper, W. W. & Clarke, R., 1989. "Constrained game formulations and interpretations for data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 40(3), pages 299-308, June. [Downloadable!] (restricted)
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