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A new criterion for technical efficiency measures: non-monotonicity across dimensions axioms

  • Kristiaan Kerstens

    (LABORES, Université Catholique de Lille, Lille, France)

  • Philippe Vanden Eeckaut

    (Institut de Statistique, Université Catholique de Louvain, Louvain-la-Neuve, Belgium)

Based on non-parametric deterministic production technologies radial and non-radial measures of technical efficiency are evaluated using properties guaranteeing insensitivity to the dimensionality of technology. These new axioms are important in empirical research and may especially prevent manipulation of results when implementing these benchmark methodologies in private or public organizations. An empirical example illustrates to which extent a series of radial and non-radial technical efficiency measures satisfies the proposed axioms. Copyright © 1999 John Wiley & Sons, Ltd.

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Article provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.

Volume (Year): 20 (1999)
Issue (Month): 1 ()
Pages: 45-59

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Handle: RePEc:wly:mgtdec:v:20:y:1999:i:1:p:45-59
Contact details of provider: Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976

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