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The Inefficiency of Production Systems and its decomposition

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Abstract

A production system is a connected network of production processes within a multi-level layer of decision making units which are responsible for allocating resources to the production processes in the different parts of the system. In such a system, inefficiency can arise both during the production process (via inefficient use of resources) and in the distribution process (with a misallocation of resources across the different nodes of the production network). In this paper we propose an encompassing model that quantifies the inefficiency of the system and its component parts.

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  • Antonio Peyrache & Maria C. A. Silva, 2019. "The Inefficiency of Production Systems and its decomposition," CEPA Working Papers Series WP052019, School of Economics, University of Queensland, Australia.
  • Handle: RePEc:qld:uqcepa:135
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    File URL: https://economics.uq.edu.au/files/13590/WP052019.pdf
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