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Information theory approach in efficiency measurement

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  • Jati K. Sengupta

Abstract

The current non–parametric method of measuring productive efficiency of input–output systems is generalized here in the stochastic case in terms of an information theory approach based on the concept of entropy. Use of maximum entropy as a method of finding the most probable distribution of the input–output data set and as a predictive criterion is illustrated for production systems with multiple inputs and outputs.

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  • Jati K. Sengupta, 1994. "Information theory approach in efficiency measurement," Applied Stochastic Models and Data Analysis, John Wiley & Sons, vol. 10(2), pages 91-102.
    • Handle: RePEc:wly:apsmda:v:10:y:1994:i:2:p:91-102
    DOI: 10.1002/asm.3150100204
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