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Directional measurement of technical efficiency of production: An axiomatic approach

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

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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Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 28 (2011)
Issue (Month): 3 (May)
Pages: 775-781

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Handle: RePEc:eee:ecmode:v:28:y:2011:i:3:p:775-781
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  1. Robert Russell, R., 1985. "Measures of technical efficiency," Journal of Economic Theory, Elsevier, vol. 35(1), pages 109-126, February.
  2. Luenberger, David G., 1992. "Benefit functions and duality," Journal of Mathematical Economics, Elsevier, vol. 21(5), pages 461-481.
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  7. Guironnet, J.-P. & Peypoch, N., 2007. "Human capital allocation and overeducation: A measure of French productivity (1987, 1999)," Economic Modelling, Elsevier, vol. 24(3), pages 398-410, May.
  8. W. Briec, 1997. "A Graph-Type Extension of Farrell Technical Efficiency Measure," Journal of Productivity Analysis, Springer, vol. 8(1), pages 95-110, March.
  9. Robert Russell, R., 1990. "Continuity of measures of technical efficiency," Journal of Economic Theory, Elsevier, vol. 51(2), pages 255-267, August.
  10. Bol, Georg, 1986. "On technical efficiency measures: A remark," Journal of Economic Theory, Elsevier, vol. 38(2), pages 380-385, April.
  11. McFadden, Daniel, 1978. "Cost, Revenue, and Profit Functions," Histoy of Economic Thought Chapters, in: Fuss, Melvyn & McFadden, Daniel (ed.), Production Economics: A Dual Approach to Theory and Applications, volume 1, chapter 1 McMaster University Archive for the History of Economic Thought.
  12. Zieschang, Kimberly D., 1984. "An extended farrell technical efficiency measure," Journal of Economic Theory, Elsevier, vol. 33(2), pages 387-396, August.
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