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Efficiency and Productivity Analysis from a System Perspective: Historical Overview

In: Advances in Economic Measurement

Author

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  • Antonio Peyrache

    (University of Queensland)

  • Maria C. A. Silva

    (CEGE—Católica Porto Business School)

Abstract

The last decade has witnessed an exponential proliferation of studies on Network Data Envelopment Analysis (NDEA) as a tool to measure efficiency and productivity for production systems. Those systems are composed of various layers of decision making (hierarchically organized) and potentially interconnected production processes. The decision makers face the problem of allocating resources to the various production processes in an efficient manner. This chapter provides a historical perspective to these developments by linking them to earlier works dating back to Kantorovich (Mathematical methods of organizing and planning production. Leningrad University, 1939) and Koopmans (Activity analysis of production and allocation, 1951). Both the allocation problem and the measures of efficiency used by these early authors are astonishingly relevant and similar to those in the recent NDEA literature. The modern researcher in NDEA should take stock of this early forgotten contributions.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:sprchp:978-981-19-2023-3_4
    DOI: 10.1007/978-981-19-2023-3_4
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    1. Peyrache, Antonio & Silva, Maria C.A., 2024. "The decomposition of efficiency in parallel network production models," Omega, Elsevier, vol. 127(C).

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