How to properly decompose economic efficiency using technical and allocative criteria with non-homothetic DEA technologies
Author
Suggested Citation
Download full text from publisher
Other versions of this item:
- Aparicio, Juan & Pastor, Jesus T. & Zofio, Jose L., 2015. "How to properly decompose economic efficiency using technical and allocative criteria with non-homothetic DEA technologies," European Journal of Operational Research, Elsevier, vol. 240(3), pages 882-891.
References listed on IDEAS
- Jose Zofio & Jesus Pastor & Juan Aparicio, 2013.
"The directional profit efficiency measure: on why profit inefficiency is either technical or allocative,"
Journal of Productivity Analysis, Springer, vol. 40(3), pages 257-266, December.
- Zofío, José Luis & Pastor, Jesús & Aparicio, Juan, 2010. "The Directional Profit Efficiency Measure: On Why Profit Inefficiency is either Technical or Allocative," Working Papers in Economic Theory 2010/09, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
- Sato, Ryuzo, 1977. "Homothetic and Non-Homothetic CES Production Functions," American Economic Review, American Economic Association, vol. 67(4), pages 559-569, September.
- Bogetoft, Peter & Fare, Rolf & Obel, Borge, 2006.
"Allocative efficiency of technically inefficient production units,"
European Journal of Operational Research, Elsevier, vol. 168(2), pages 450-462, January.
- Bogetoft, Peter & Fare, Rolf, 1999. "Allocative Efficiency of Technically Inefficient Production Units," Unit of Economics Working Papers 24217, Royal Veterinary and Agricultural University, Food and Resource Economic Institute.
- Simar, Léopold & Vanhems, Anne & Wilson, Paul W., 2012.
"Statistical inference for DEA estimators of directional distances,"
European Journal of Operational Research, Elsevier, vol. 220(3), pages 853-864.
- Simar, Leopold & Vanhems, Anne & Wilson, Paul W., 2011. "Statistical Inference for DEA Estimators of Directional Distances," LIDAM Discussion Papers ISBA 2011035, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
- Simar, Leopold & Vanhems, Anne & Wilson, Paul W., 2012. "Statistical inference for DEA estimators of directional distances," LIDAM Reprints ISBA 2012018, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
- Manthos Delis & Maria Iosifidi & Efthymios G. Tsionas, 2014.
"On the Estimation of Marginal Cost,"
Operations Research, INFORMS, vol. 62(3), pages 543-556, June.
- Delis, Manthos D & Iosifidi, Maria & Tsionas, Efthymios, 2012. "On the estimation of marginal cost," MPRA Paper 43514, University Library of Munich, Germany.
- R. Färe & S. Grosskopf & G. Whittaker, 2013. "Directional output distance functions: endogenous directions based on exogenous normalization constraints," Journal of Productivity Analysis, Springer, vol. 40(3), pages 267-269, December.
- Ray,Subhash C., 2012.
"Data Envelopment Analysis,"
Cambridge Books,
Cambridge University Press, number 9781107405264, September.
- Ray,Subhash C., 2004. "Data Envelopment Analysis," Cambridge Books, Cambridge University Press, number 9780521802567, September.
- R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
- 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.
- Fare, Rolf & Knox Lovell, C. A., 1978. "Measuring the technical efficiency of production," Journal of Economic Theory, Elsevier, vol. 19(1), pages 150-162, October.
- W. Briec & J. B. Lesourd, 1999. "Metric Distance Function and Profit: Some Duality Results," Journal of Optimization Theory and Applications, Springer, vol. 101(1), pages 15-33, April.
- Christensen, Laurits R & Greene, William H, 1976. "Economies of Scale in U.S. Electric Power Generation," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 655-676, August.
- Chambers, Robert G. & Chung, Yangho & Fare, Rolf, 1996. "Benefit and Distance Functions," Journal of Economic Theory, Elsevier, vol. 70(2), pages 407-419, August.
- Jacobsen, S E, 1970. "Production Correspondences," Econometrica, Econometric Society, vol. 38(5), pages 754-771, September.
- Lee, Chia-Yen, 2014. "Meta-data envelopment analysis: Finding a direction towards marginal profit maximization," European Journal of Operational Research, Elsevier, vol. 237(1), pages 207-216.
- Robert Chambers & Thomas Mitchell, 2001. "Homotheticity and Non-Radial Changes," Journal of Productivity Analysis, Springer, vol. 15(1), pages 31-39, January.
- Kopp, Raymond J. & Diewert, W. Erwin, 1982. "The decomposition of frontier cost function deviations into measures of technical and allocative efficiency," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 319-331, August.
- Walter Briec & Philippe Gardères, 2004. "Generalized benefit functions and measurement of utility," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 60(1), pages 101-123, September.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Kerstens, Kristiaan & Sadeghi, Jafar & Toloo, Mehdi & Van de Woestyne, Ignace, 2022.
"Procedures for ranking technical and cost efficient units: With a focus on nonconvexity,"
European Journal of Operational Research, Elsevier, vol. 300(1), pages 269-281.
- Kristiaan Kerstens & Jafar Sadeghi & Mehdi Toloo & Ignace van de Woestyne, 2022. "Procedures for ranking technical and cost efficient units: With a focus on nonconvexity," Post-Print hal-03595989, HAL.
- Pan Wanbin & Huang Lei & Zhao Linlin, 2017. "An Integrated DEA Model Allowing Decomposition of Eco-Efficiency: A Case Study of China," Journal of Systems Science and Information, De Gruyter, vol. 5(5), pages 473-488, October.
- Monastyrenko, Evgenii, 2017. "Eco-efficiency outcomes of mergers and acquisitions in the European electricity industry," Energy Policy, Elsevier, vol. 107(C), pages 258-277.
- Juan Aparicio & José L. Zofío, 2017.
"Revisiting the decomposition of cost efficiency for non-homothetic technologies: a directional distance function approach,"
Journal of Productivity Analysis, Springer, vol. 48(2), pages 133-146, December.
- Aparicio, Juan & Zofío, José L., 2017. "Revisiting the Decomposition of Cost Efficiency for Non-homothetic Technologies: A Directional Distance Function Approach," Efficiency Series Papers 2017/01, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
- Pastor, Jesus T. & Zofio, Jose L., 2017. "Can Farrell's allocative efficiency be generalized by the directional distance function approach?Author-Name: Aparicio, Juan," European Journal of Operational Research, Elsevier, vol. 257(1), pages 345-351.
- Álvarez, Inmaculada & Barbero, Javier & Zofío, Jose Luis, 2016. "A Data Envelopment Analysis Toolbox for MATLAB," Working Papers in Economic Theory 2016/03, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
- Aparicio, Juan & Zofío, José L., 2021.
"Economic cross-efficiency,"
Omega, Elsevier, vol. 100(C).
- Aparicio, J. & Zofío, J.L., 2019. "Economic Cross-Efficiency," ERIM Report Series Research in Management ERS-2019-001-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
- Rolf Färe & Giannis Karagiannis, 2022. "Aggregation and decomposition of Farrell efficiencies," Operational Research, Springer, vol. 22(5), pages 5675-5683, November.
- Maria-Eugenia Sanin & Sylvain Sourisseau, 2019. "Pervasive EUAs free allocation: the case of the steel industry," Documents de recherche 19-06, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
- Xin ZHAO & Yong PENG & Yuemei XUE & Shun YUAN, 2016. "Spatial Patterns of Ocean Economic Efficiency and their Influencing Factors in Chinese Coastal Regions," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 35-49, December.
- Zhang, Puwei & You, Jianxin & Jia, Guangshe & Chen, Jindao & Yu, Anyu, 2018. "Estimation of carbon efficiency decomposition in materials and potential material savings for China's construction industry," Resources Policy, Elsevier, vol. 59(C), pages 148-159.
- Gulati, Rachita, 2022. "Global and local banking crises and risk-adjusted efficiency of Indian banks: Are the impacts really perspective-dependent?," The Quarterly Review of Economics and Finance, Elsevier, vol. 84(C), pages 23-39.
- Partovi, Elmira & Matousek, Roman, 2019. "Bank efficiency and non-performing loans: Evidence from Turkey," Research in International Business and Finance, Elsevier, vol. 48(C), pages 287-309.
- Jianqing Zhang & Song Wang & Peilei Yang & Fei Fan & Xueli Wang, 2020. "Analysis of Scale Factors on China’s Sustainable Development Efficiency Based on Three-Stage DEA and a Double Threshold Test," Sustainability, MDPI, vol. 12(6), pages 1-26, March.
- Balk, B.M. & Zofío, J.L., 2018. "The Many Decompositions of Total Factor Productivity Change," ERIM Report Series Research in Management ERS-2018-003-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
- Juan Aparicio & José L. Zofío, 2020.
"New Definitions of Economic Cross-efficiency,"
International Series in Operations Research & Management Science, in: Juan Aparicio & C. A. Knox Lovell & Jesus T. Pastor & Joe Zhu (ed.), Advances in Efficiency and Productivity II, pages 11-32,
Springer.
- Aparicio, J. & Zofío, J.L., 2019. "New Definitions of Economic Cross-Efficiency," ERIM Report Series Research in Management ERS-2019-010-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
- Dao, Kieu Oanh & Nguyen, Thi Yen & Hussain, Sarfraz & Nguyen, V.C., 2020. "Factors affecting non-performing loans of commercial banks: The role of bank performance and credit growth," OSF Preprints 6ykd8, Center for Open Science.
- Zhikang Xie & Xinglin Liu & Hina Najam & Qinghua Fu & Jawad Abbas & Ubaldo Comite & Laura Mariana Cismas & Andra Miculescu, 2022. "Achieving Financial Sustainability through Revenue Diversification: A Green Pathway for Financial Institutions in Asia," Sustainability, MDPI, vol. 14(6), pages 1-16, March.
- Juan Aparicio & José L. Zofío & Jesús T. Pastor, 2023. "Decomposing Economic Efficiency into Technical and Allocative Components: An Essential Property," Journal of Optimization Theory and Applications, Springer, vol. 197(1), pages 98-129, April.
- Louhichi, Awatef & Boujelbene, Younes, 2020. "Credit risk pricing and the rationality of lending decision-making within dual banking systems: A parametric approach," Economic Systems, Elsevier, vol. 44(1).
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Juan Aparicio & José L. Zofío, 2017.
"Revisiting the decomposition of cost efficiency for non-homothetic technologies: a directional distance function approach,"
Journal of Productivity Analysis, Springer, vol. 48(2), pages 133-146, December.
- Aparicio, Juan & Zofío, José L., 2017. "Revisiting the Decomposition of Cost Efficiency for Non-homothetic Technologies: A Directional Distance Function Approach," Efficiency Series Papers 2017/01, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
- Fangqing Wei & Junfei Chu & Jiayun Song & Feng Yang, 2019. "A cross-bargaining game approach for direction selection in the directional distance function," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 41(3), pages 787-807, September.
- Aparicio, Juan & Borras, Fernando & Pastor, Jesus T. & Vidal, Fernando, 2013. "Accounting for slacks to measure and decompose revenue efficiency in the Spanish Designation of Origin wines with DEA," European Journal of Operational Research, Elsevier, vol. 231(2), pages 443-451.
- Lee, Chia-Yen, 2014. "Meta-data envelopment analysis: Finding a direction towards marginal profit maximization," European Journal of Operational Research, Elsevier, vol. 237(1), pages 207-216.
- Arabmaldar, Aliasghar & Sahoo, Biresh K. & Ghiyasi, Mojtaba, 2023.
"A generalized robust data envelopment analysis model based on directional distance function,"
European Journal of Operational Research, Elsevier, vol. 311(2), pages 617-632.
- Arabmaldar, A. & Sahoo, B.K. & Ghiyasi, M., 2023. "A generalized robust data envelopment analysis model based on directional distance function," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 138962, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
- Maria Silva Portela & Pedro Borges & Emmanuel Thanassoulis, 2003. "Finding Closest Targets in Non-Oriented DEA Models: The Case of Convex and Non-Convex Technologies," Journal of Productivity Analysis, Springer, vol. 19(2), pages 251-269, April.
- Rolf Färe & Xinju He & Sungko Li & Valentin Zelenyuk, 2019. "A Unifying Framework for Farrell Profit Efficiency Measurement," Operations Research, INFORMS, vol. 67(1), pages 183-197, January.
- Subhash C. Ray, 2014. "Data Envelopment Analysis: An Overview," Working papers 2014-33, University of Connecticut, Department of Economics.
- Aparicio, Juan & Mahlberg, Bernhard & Pastor, Jesus T. & Sahoo, Biresh K., 2014. "Decomposing technical inefficiency using the principle of least action," European Journal of Operational Research, Elsevier, vol. 239(3), pages 776-785.
- Luis R. Murillo‐Zamorano, 2004. "Economic Efficiency and Frontier Techniques," Journal of Economic Surveys, Wiley Blackwell, vol. 18(1), pages 33-77, February.
- Lee, Chia-Yen & Charles, Vincent, 2022. "A robust capacity expansion integrating the perspectives of marginal productivity and capacity regret," European Journal of Operational Research, Elsevier, vol. 296(2), pages 557-569.
- Ke Wang & Yujiao Xian & Chia-Yen Lee & Yi-Ming Wei & Zhimin Huang, 2019.
"On selecting directions for directional distance functions in a non-parametric framework: a review,"
Annals of Operations Research, Springer, vol. 278(1), pages 43-76, July.
- Ke Wang & Yujiao Xian & Chia-Yen Lee & Yi-Ming Wei & Zhimin Huang, 2017. "On selecting directions for directional distance functions in a non-parametric framework: A review," CEEP-BIT Working Papers 99, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
- Paulo Matos & Guilherme Padilha & Maurício Benegas, 2016. "On the management efficiency of Brazilian stock mutual funds," Operational Research, Springer, vol. 16(3), pages 365-399, October.
- Aparicio, Juan & Monge, Juan F. & Ramón, Nuria, 2021. "A new measure of technical efficiency in data envelopment analysis based on the maximization of hypervolumes: Benchmarking, properties and computational aspects," European Journal of Operational Research, Elsevier, vol. 293(1), pages 263-275.
- Barbero, Javier & Zofío, José L., 2023. "The measurement of profit, profitability, cost and revenue efficiency through data envelopment analysis: A comparison of models using BenchmarkingEconomicEfficiency.jl," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).
- Deng, Zhongqi & Jiang, Nan & Pang, Ruizhi, 2021.
"Factor-analysis-based directional distance function: The case of New Zealand hospitals,"
Omega, Elsevier, vol. 98(C).
- Nan Jiang & Zhongqi Deng & Ruizhi Pang, 2019. "Factor-Analysis-Based Directional Distance Function: The case of New Zealand hospitals," Working Papers 2019-01, Auckland University of Technology, Department of Economics.
- Alcaraz, Javier & Anton-Sanchez, Laura & Aparicio, Juan & Monge, Juan F. & Ramón, Nuria, 2021. "Russell Graph efficiency measures in Data Envelopment Analysis: The multiplicative approach," European Journal of Operational Research, Elsevier, vol. 292(2), pages 663-674.
- Rafael Benítez & Vicente Coll-Serrano & Vicente J. Bolós, 2021. "deaR-Shiny: An Interactive Web App for Data Envelopment Analysis," Sustainability, MDPI, vol. 13(12), pages 1-19, June.
- Jens J. Krüger & Moritz Tarach, 2022. "Greenhouse Gas Emission Reduction Potentials in Europe by Sector: A Bootstrap-Based Nonparametric Efficiency Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(4), pages 867-898, April.
- Shuguang Lin & Paul Rouse & Ying-Ming Wang & Lin Lin & Zhen-Quan Zheng, 2023. "Performance measurement of nonhomogeneous Hong Kong hospitals using directional distance functions," Health Care Management Science, Springer, vol. 26(2), pages 330-343, June.
More about this item
Keywords
Data Envelopment Analysis; Overall efficiency; Technical efficiency; Allocative efficiency; Homotheticity.;All these keywords.
JEL classification:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
NEP fields
This paper has been announced in the following NEP Reports:- NEP-EFF-2014-01-24 (Efficiency and Productivity)
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uam:wpaper:201311. See general information about how to correct material in RePEc.
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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Andrés Maroto-Sánchez (email available below). General contact details of provider: https://edirc.repec.org/data/dauames.html .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.