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Aggregation of scale efficiency

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  • Zelenyuk, Valentin

Abstract

In this article we generalize the aggregation theory in efficiency and productivity analysis by deriving solutions to the problem of aggregation of individual scale efficiency measures, primal and dual, into aggregate primal and dual scale efficiency measures of a group (e.g., industry). The new aggregation result is coherent with aggregation framework and solutions that were earlier derived for other related efficiency measures and can be used in practice for estimation of scale efficiency of an industry or other groups of firms within it.

Suggested Citation

  • Zelenyuk, Valentin, 2015. "Aggregation of scale efficiency," European Journal of Operational Research, Elsevier, vol. 240(1), pages 269-277.
    • Handle: RePEc:eee:ejores:v:240:y:2015:i:1:p:269-277
    DOI: 10.1016/j.ejor.2014.06.038
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