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.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Førsund, Finn R. & Hjalmarsson, Lennart, 1978.
"Generalized Farrell Measures of Efficiency: An Application to Milk Processing in Swedish Dairy Plants,"
Working Paper Series
17, Research Institute of Industrial Economics.
- Forsund, Finn R & Hjalmarsson, Lennart, 1979. "Generalised Farrell Measures of Efficiency: An Application to Milk Processing in Swedish Dairy Plants," Economic Journal, Royal Economic Society, vol. 89(354), pages 294-315, June.
- Li, Sung-ko & Cheng, Yuk-shing, 2007. "Solving the puzzles of structural efficiency," European Journal of Operational Research, Elsevier, vol. 180(2), pages 713-722, July.
- Ylvinger, Svante, 2000. "Industry performance and structural efficiency measures: Solutions to problems in firm models," European Journal of Operational Research, Elsevier, vol. 121(1), pages 164-174, February.
- Sebastián Lozano & Gabriel Villa, 2004. "Centralized Resource Allocation Using Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 22(1), pages 143-161, July.
- Vladimir Nesterenko & Valentin Zelenyuk, 2007. "Measuring potential gains from reallocation of resources," Journal of Productivity Analysis, Springer, vol. 28(1), pages 107-116, October.
- Fang, Lei, 2013. "A generalized DEA model for centralized resource allocation," European Journal of Operational Research, Elsevier, vol. 228(2), pages 405-412.
- Fare, Rolf & Zelenyuk, Valentin, 2003. "On aggregate Farrell efficiencies," European Journal of Operational Research, Elsevier, vol. 146(3), pages 615-620, May.
- Leleu, Hervé & Briec, Walter, 2009. "A DEA estimation of a lower bound for firms' allocative efficiency without information on price data," International Journal of Production Economics, Elsevier, vol. 121(1), pages 203-211, September.
- Asmild, Mette & Paradi, Joseph C. & Pastor, Jesus T., 2009. "Centralized resource allocation BCC models," Omega, Elsevier, vol. 37(1), pages 40-49, February.
When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:230:y:2013:i:2:p:444-446. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.