We introduce an ordinal model of efficiency measurement. Our primitive is a notion of efficiency that is comparative, but not cardinal or absolute. In this framework, we postulate axioms that we believe an ordinal efficiency measure should satisfy. Primary among these are choice consistency and planning consistency, which guide the measurement of efficiency in a firm with access to multiple technologies. Other axioms include symmetry, which states that the names of commodities do not matter, scale-invariance, which says that units of measurement of commodities does not matter, and strong monotonicity, which states that efficiency should decrease if the inputs and outputs remain static when the technology becomes unambiguously more efficient. These axioms characterize a unique ordinal efficiency measure which is represented by the coefficient of resource utilization. By replacing symmetry (the weakest of our axioms) with a very mild continuity condition, we obtain a family of path-based measures.
|Date of creation:|
|Date of revision:||30 Nov 2011|
|Contact details of provider:|| Postal: 199 Aba Khoushy Ave., Mount Carmel, Haifa, Israel, 3498838|
Web page: http://hevra.haifa.ac.il/econ/index.php/en/
More information through EDIRC
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.:
- R. Russell & William Schworm, 2009.
"Axiomatic foundations of efficiency measurement on data-generated technologies,"
Journal of Productivity Analysis,
Springer, vol. 31(2), pages 77-86, April.
- R. Robert Russell & William Schworm, 2007. "Axiomatic Foundations of Efficiency Measurement on Data-Generated Technologies," Discussion Papers 2007-35, School of Economics, The University of New South Wales.
- Bruno Leclerc & Bernard Monjardet, 2011.
"Aggregation and residuation,"
Documents de travail du Centre d'Economie de la Sorbonne
11085, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- Bruno Leclerc & Bernard Monjardet, 2010. "Aggregation and residuation," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00504982, HAL.
- Bruno Leclerc & Bernard Monjardet, 2011. "Aggregation and residuation," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00659190, HAL.
- Aly, Hassan Y, et al, 1990. "Technical, Scale, and Allocative Efficiencies in U.S. Banking: An Empirical Investigation," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 211-18, May.
- R. Russell & William Schworm, 2011. "Properties of inefficiency indexes on 〈input, output〉 space," Journal of Productivity Analysis, Springer, vol. 36(2), pages 143-156, October.
- Christopher Chambers & Alan Miller, 2011. "Rules for aggregating information," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 36(1), pages 75-82, January.
- Dinko Dimitrov & Thierry Marchant & Debasis Mishra, 2012.
"Separability and aggregation of equivalence relations,"
Springer;Society for the Advancement of Economic Theory (SAET), vol. 51(1), pages 191-212, September.
- Dinko Dimitrov & Thierry Marchant & Debasis Mishra, 2009. "Separability and aggregation of equivalence relations," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 09-06, Indian Statistical Institute, New Delhi, India.
- Miller, Alan D., 2008. "Group identification," Games and Economic Behavior, Elsevier, vol. 63(1), pages 188-202, May.
When requesting a correction, please mention this item's handle: RePEc:haf:huedwp:wp201114. 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: (Anna Rubinchik)
If references are entirely missing, you can add them using this form.