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Directional measurement of technical efficiency of production: An axiomatic approach

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  • Briec, Walter
  • Cavaignac, Laurent
  • Kerstens, Kristiaan

Abstract

This contribution revisits the debate on the axiomatic properties satisfied by various radial versus non-radial measures of technical efficiency in production. This issue arises whenever isoquant and efficient subset of technology diverge and hence traditional radial measurement does not comply with Koopmans' definition of technical efficiency. This axiomatic approach to technical efficiency measurement is revisited within the framework of the more recently introduced directional distance function. This analysis provides the opportunity to define some new directional efficiency measures.

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  • Briec, Walter & Cavaignac, Laurent & Kerstens, Kristiaan, 2011. "Directional measurement of technical efficiency of production: An axiomatic approach," Economic Modelling, Elsevier, vol. 28(3), pages 775-781, May.
    • Handle: RePEc:eee:ecmode:v:28:y:2011:i:3:p:775-781
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    2. R. Russell & William Schworm, 2009. "Axiomatic foundations of efficiency measurement on data-generated technologies," Journal of Productivity Analysis, Springer, vol. 31(2), pages 77-86, April.
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    Cited by:

    1. Boussemart, Jean-Philippe & Leleu, Hervé & Mensah, Edward & Shitikova, Karina, 2020. "Technological catching-up and structural convergence among US industries," Economic Modelling, Elsevier, vol. 84(C), pages 135-146.
    2. Walter Briec & Laurent Cavaignac & Kristiaan Kerstens, 2020. "Input Efficiency Measures: A Generalized, Encompassing Formulation," Operations Research, INFORMS, vol. 68(6), pages 1836-1849, November.
    3. Walter Briec, 2021. "Distance Functions and Generalized Means: Duality and Taxonomy," Papers 2112.09443, arXiv.org, revised May 2023.
    4. Stenger, Melle Agathe & Stenger, Agathe, 2017. "A remark on the definition of the Färe–Lovell measure for infeasible production vectors: implication for the Luenberger productivity indicator," International Journal of Production Economics, Elsevier, vol. 184(C), pages 1-6.

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