Maintaining the Regular Ultra Passum Law in data envelopment analysis
The variable returns to scale data envelopment analysis (DEA) model is developed with a maintained hypothesis of convexity in input-output space. This hypothesis is not consistent with standard microeconomic production theory that posits an S-shape for the production frontier, i.e. for production technologies that obey the Regular Ultra Passum Law. Consequently, measures of technical efficiency assuming convexity are biased downward. In this paper, we provide a more general DEA model that allows the S-shape.
|Date of creation:||04 Jan 2012|
|Contact details of provider:|| Postal: Department of Business and Economics, University of Southern Denmark, Campusvej 55, DK-5230 Odense M, Denmark|
Phone: 65 50 32 33
Fax: 65 50 32 37
Web page: http://www.sdu.dk/ivoe
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.:
- Cinzia Daraio & Léopold Simar, 2007.
"Conditional nonparametric frontier models for convex and nonconvex technologies: a unifying approach,"
Journal of Productivity Analysis,
Springer, vol. 28(1), pages 13-32, October.
- Cinzia Daraio & Leopold Simar, 2005. "Conditional Nonparametric Frontier Models for Convex and Non Convex Technologies: a Unifying Approach," LEM Papers Series 2005/12, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Peter Bogetoft, 1996. "DEA on Relaxed Convexity Assumptions," Management Science, INFORMS, vol. 42(3), pages 457-465, March.
- Ruggiero, John, 1996. "On the measurement of technical efficiency in the public sector," European Journal of Operational Research, Elsevier, vol. 90(3), pages 553-565, May.
- Fare, R & Primont, D, 1995. "On Inverse Homotheticity," Bulletin of Economic Research, Wiley Blackwell, vol. 47(2), pages 161-166, April.
- Olesen, Ole Bent & Petersen, Niels Christian, 2011. "Scale properties in data envelopment analysis," Discussion Papers of Business and Economics 4/2011, Department of Business and Economics, University of Southern Denmark.
- Podinovski, V. V., 2005. "Selective convexity in DEA models," European Journal of Operational Research, Elsevier, vol. 161(2), pages 552-563, March.
- A. Zellner & N. S. Revankar, 1969. "Generalized Production Functions," Review of Economic Studies, Oxford University Press, vol. 36(2), pages 241-250.
- Niels Christian Petersen, 1990. "Data Envelopment Analysis on a Relaxed Set of Assumptions," Management Science, INFORMS, vol. 36(3), pages 305-314, March.
- Cazals, Catherine & Florens, Jean-Pierre & Simar, Leopold, 2002. "Nonparametric frontier estimation: a robust approach," Journal of Econometrics, Elsevier, vol. 106(1), pages 1-25, January.
- Ginsberg, William, 1974. "The multiplant firm with increasing returns to scale," Journal of Economic Theory, Elsevier, vol. 9(3), pages 283-292, November.
When requesting a correction, please mention this item's handle: RePEc:hhs:sdueko:2012_002. 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: (Lene Holbæk)
If references are entirely missing, you can add them using this form.