Value And Quantity Data In Economic And Technical Efficiency Measurement
This paper calls attention to the implications of using cost or revenue data in efficiency measurement through Data Envelopment Analysis (DEA). In many empirical settings this issue arises, since frequently input and/or output quantities or prices are not available, and only value measures are available. When value data are used in technical efficiency models it is clearly questionable what sort of efficiency measure is being computed, since it cannot be a productive efficiency measure (that takes into account only quantities of inputs and outputs), and it cannot be either a traditional cost or revenue efficiency measure (that considers prices of factors disagregated from quantities). In this paper we call the attention for this fact and address situations where only value data are available, and situations where for some inputs (outputs) there is quantity information and for others there is value information. The main contribution of this paper is a reconciliation of previous literature on analysing these issues and on providing some guidelines on what to do and not do, when these issues arise in a data set.
|Date of creation:||Sep 2013|
|Date of revision:|
|Contact details of provider:|| Postal: Rua Diogo Botelho, 1327; 4169 - 005 Porto|
Phone: +351 226 196 200
Fax: +351 226 196 291
Web page: http://www.catolicabs.porto.ucp.pt/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
- Rajiv Banker & Hsihui Chang & Ram Natarajan, 2007. "Estimating DEA technical and allocative inefficiency using aggregate cost or revenue data," Journal of Productivity Analysis, Springer, vol. 27(2), pages 115-121, April.
- Subhash C. Ray & Lei Chen & Kankana Mukherjee, 2008.
"Input Price Variation Across Locations and a Generalized Measure of Cost Efficiency,"
2008-11, University of Connecticut, Department of Economics.
- Ray, Subhash C. & Chen, Lei & Mukherjee, Kankana, 2008. "Input price variation across locations and a generalized measure of cost efficiency," International Journal of Production Economics, Elsevier, vol. 116(2), pages 208-218, December.
- Rolf Färe & Shawna Grosskopf & Hyunok Lee, 1990. "A Nonparametric Approach to Expenditure-Constrained Profit Maximization," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(3), pages 574-581.
- Rolf Fare & Valentin Zelenyuk, 2002. "Input aggregation and technical efficiency," Applied Economics Letters, Taylor & Francis Journals, vol. 9(10), pages 635-636.
- Portela, Maria Conceição A. Silva & Thanassoulis, Emmanuel, 2014. "Economic efficiency when prices are not fixed: disentangling quantity and price efficiency," Omega, Elsevier, vol. 47(C), pages 36-44.
- Cross, Robin M. & Färe, Rolf, 2009. "Value data and the Bennet price and quantity indicators," Economics Letters, Elsevier, vol. 102(1), pages 19-21, January.
- Robin Cross & Rolf Färe, 2008. "Farrell efficiency under value and quantity data," Journal of Productivity Analysis, Springer, vol. 29(3), pages 193-199, June.
When requesting a correction, please mention this item's handle: RePEc:cap:wpaper:032013. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ricardo Goncalves)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.