A comment on “solving the puzzles of structural efficiency”
In a recent paper by Li and Cheng [Li,S.K., Cheng, Y.S., 2007. Solving the puzzles of structural efficiency. European Journal of Operational Research 180(2), 713–722], they developed the shadow price model to solve the existing puzzles of structural efficiency theoretically. However, we observe that the optimal shadow price vector in the shadow price model by Li and Cheng (2007) is not always unique. As a result, the decomposition of the structural efficiency is arbitrarily generated, depending on the shadow price vector we choose. Finally, an example with multiple inputs and outputs is used to illustrate the phenomenon.
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