IDEAS home Printed from https://ideas.repec.org/a/kap/jeczfn/v144y2025i2d10.1007_s00712-024-00880-z.html
   My bibliography  Save this article

Aggregation of directional distance functions and industrial efficiency: a note

Author

Listed:
  • Giannis Karagiannis

    (University of Macedonia)

Abstract

Briec et al. (2003) Aggregation of directional distance functions and industrial efficiency. J Econ 79:237–261) showed that industrial and structural efficiency are identical in the context of cost aggregation if all firms use the same technology, a single output is produced and constant returns to scale prevail. In this note it is shown that the same is also true if the technology is additive, which is equivalently referred to as independence in production or input non-jointness.

Suggested Citation

  • Giannis Karagiannis, 2025. "Aggregation of directional distance functions and industrial efficiency: a note," Journal of Economics, Springer, vol. 144(2), pages 139-143, March.
    • Handle: RePEc:kap:jeczfn:v:144:y:2025:i:2:d:10.1007_s00712-024-00880-z
    DOI: 10.1007/s00712-024-00880-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s00712-024-00880-z
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1007/s00712-024-00880-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. William J. Baumol & Dietrich Fischer, 1978. "Cost-Minimizing Number of Firms and Determination of Industry Structure," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 92(3), pages 439-467.
    2. Steven Buccola & Rolf Fare, 2008. "Reaggregation and firm-level inference in multiplant technologies," Journal of Economics, Springer, vol. 95(3), pages 255-270, December.
    3. Walter Briec & Benoit Dervaux & Hervé Leleu, 2003. "Aggregation of Directional Distance Functions and Industrial Efficiency," Journal of Economics, Springer, vol. 79(3), pages 237-261, July.
    4. Briec, Walter & Mussard, Stéphane, 2020. "Improvement of technical efficiency of firm groups," European Journal of Operational Research, Elsevier, vol. 283(3), pages 991-1001.
    5. Jayashree Sil & Steven Buccola, 1995. "Efficiency of the Multiplant, Multiproduct Firm," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 1001-1011.
    6. Briec, Walter & Mussard, Stéphane, 2014. "Efficient firm groups: Allocative efficiency in cooperative games," European Journal of Operational Research, Elsevier, vol. 239(1), pages 286-296.
    7. Rolf Färe & Giannis Karagiannis, 2023. "Addition and aggregative efficiency," Journal of Productivity Analysis, Springer, vol. 59(3), pages 281-285, June.
    8. Robert G. Chambers, 1998. "The Structure of Multiplant Technologies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(4), pages 839-851.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Walter Briec & Marc Dubois & Stéphane Mussard, 2021. "Technical efficiency in firm games with constant returns to scale and $$\alpha $$ α -returns to scale," Annals of Operations Research, Springer, vol. 304(1), pages 35-62, September.
    2. Mussard, Stéphane & Pi Alperin, María Noel, 2021. "Accounting for risk factors on health outcomes: The case of Luxembourg," European Journal of Operational Research, Elsevier, vol. 291(3), pages 1180-1197.
    3. Briec, Walter & Mussard, Stéphane, 2020. "Improvement of technical efficiency of firm groups," European Journal of Operational Research, Elsevier, vol. 283(3), pages 991-1001.
    4. Cesaroni, Giovanni, 2018. "Industry cost efficiency in data envelopment analysis," Socio-Economic Planning Sciences, Elsevier, vol. 61(C), pages 37-43.
    5. Valentin Zelenyuk, 2024. "Aggregation in efficiency and productivity analysis: a brief review with new insights and justifications for constant returns to scale," Journal of Productivity Analysis, Springer, vol. 62(3), pages 321-334, December.
    6. Thijs Raa, 2011. "Benchmarking and industry performance," Journal of Productivity Analysis, Springer, vol. 36(3), pages 285-292, December.
    7. Barnabé Walheer, 2021. "A directional technology convergence index," Economics Bulletin, AccessEcon, vol. 41(3), pages 1330-1337.
    8. Subhash C. Ray & Shilpa Sethia, 2022. "Nonparametric measurement of potential gains from mergers: an additive decomposition and application to Indian bank mergers," Journal of Productivity Analysis, Springer, vol. 57(2), pages 115-130, April.
    9. Gary Ferrier & Hervé Leleu & Vivian Valdmanis, 2009. "Hospital capacity in large urban areas: is there enough in times of need?," Journal of Productivity Analysis, Springer, vol. 32(2), pages 103-117, October.
    10. Walter Briec & Marc Dubois & Stéphane Mussard, 2019. "Technical Efficiency in Firm Games with Constant Returns to Scale and α-Returns to Scale," Working Papers hal-02344310, HAL.
    11. Färe, Rolf & Grosskopf, Shawna & Karagiannis, Giannis, 2018. "On technical inefficiency indicators at the industry level," International Journal of Production Economics, Elsevier, vol. 196(C), pages 333-334.
    12. Briec, Walter & Mussard, Stéphane, 2014. "Efficient firm groups: Allocative efficiency in cooperative games," European Journal of Operational Research, Elsevier, vol. 239(1), pages 286-296.
    13. Gunnar Eliasson & Magnus Henrekson, 2004. "William J. Baumol: An Entrepreneurial Economist on the Economics of Entrepreneurship," Small Business Economics, Springer, vol. 23(1), pages 1-7, August.
    14. Antonio Peyrache, 2014. "Cost Constrained Industry Inefficiency," CEPA Working Papers Series WP042014, School of Economics, University of Queensland, Australia.
    15. Kassoum Ayouba & Jean-Philippe Boussemart & Stéphane Vigeant, 2017. "The impact of single farm payments on technical inefficiency of French crop farms," Review of Agricultural, Food and Environmental Studies, Springer, vol. 98(1), pages 1-23, July.
    16. Shen, Zhiyang & Boussemart, Jean-Philippe & Leleu, Hervé, 2017. "Aggregate green productivity growth in OECD’s countries," International Journal of Production Economics, Elsevier, vol. 189(C), pages 30-39.
    17. Antonio Peyrache & Maria C. A. Silva, 2022. "Efficiency and Productivity Analysis from a System Perspective: Historical Overview," Springer Books, in: Duangkamon Chotikapanich & Alicia N. Rambaldi & Nicholas Rohde (ed.), Advances in Economic Measurement, chapter 0, pages 173-230, Springer.
    18. Boussemart, Jean-Philippe & Ferrier, Gary D. & Leleu, Hervé & Shen, Zhiyang, 2020. "An expanded decomposition of the Luenberger productivity indicator with an application to the Chinese healthcare sector," Omega, Elsevier, vol. 91(C).
    19. Marianne Fischman & Emeric Lendjel, 2010. "Comment expliquer la permanence de l'artisanat dans le transport fluvial de marchandises ?," Post-Print halshs-00582556, HAL.
    20. Badunenko, Oleg & Fritsch, Michael & Stephan, Andreas, 2008. "Allocative efficiency measurement revisited--Do we really need input prices?," Economic Modelling, Elsevier, vol. 25(5), pages 1093-1109, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jeczfn:v:144:y:2025:i:2:d:10.1007_s00712-024-00880-z. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.