This paper defines a decomposition of technical efficiency for a series of nonparametric deterministic reference technologies related to the Free Disposal Hull. More specifically, introducing several returns to scale assumptionsinto this non-convex production model allows one to distinguish between technical and scale inefficiencies.These technologies and the resulting efficiency decomposition are illustrated with several data sets and contrasted with results based on the traditional, convex Data Envelopment Analysis models. In particular, data on UK rates departments are extensively analysed. Furthermore, samples of French urban transit companies and of Belgian municipalities serve to verify certain empirical regularities.
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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number
1998055.
Find related papers by JEL classification: D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
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