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Dual Farrell measures of efficiency

Author

Listed:
  • Juan Muro

    (Departamento de Economía, Universidad de Alcalá.)

Abstract
This paper provides several definitions of efficiency measures in the price space. Economic and scale aspects of inefficiency are considered to give empirical content to the measurement of efficiency when the production technology is described by cost functions models. It shows, in the Hanoch’s symmetric duality approach, how the new definitions preserve the ranking of efficiency, are formally dually symmetric to the ones defined in the input space, and both are established with respect to different descriptions of the same technology. In addition, graphical procedures are utilized to make an insight into the achievement of polar technologies from primal ones and into the relationship between Shephard’s lemma and Roy’s identity.

Suggested Citation

  • Juan Muro, 2011. "Dual Farrell measures of efficiency," Alcamentos 1101, Universidad de Alcalá, Departamento de Economía..
    • Handle: RePEc:alc:alcamo:1101
    as

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    File URL: http://ebuah.uah.es/dspace/bitstream/handle/10017/9396/Alcamentos1101.pdf
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    More about this item

    Keywords

    Efficiency measures; scale measures; duality theory; polar forms;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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