Foundations of data envelopment analysis for Pareto-Koopmans efficient empirical production functions

The construction and analysis of Pareto-efficient frontier production functions by a new Data Envelopment Analysis method is presented in the context of new theoretical characterizations of the inherent structure and capabilities of such empirical production functions. Contrasts and connections with...

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Bibliographic Details
Published in:Journal of econometrics 1985-10, Vol.30 (1), p.91-107
Main Authors: Charnes, A, Cooper, W.W, Golany, B, Seiford, L, Stutz, J
Format: Article
Language:English
Subjects:
Data envelopment analysis
Economic theory
Efficiency
Mathematical models
Pareto optimum
Production functions
Statistical analysis
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Summary:The construction and analysis of Pareto-efficient frontier production functions by a new Data Envelopment Analysis method is presented in the context of new theoretical characterizations of the inherent structure and capabilities of such empirical production functions. Contrasts and connections with other developments, including solutions of some remaining problems, are made re aspects such as informatics, economics of scale, isotonicity and non-concavity, discretionary and non-discretionary inputs, piecewise linearity, partial derivatives and Cobb-Douglas properties of the functions. Non-Archimedean constructs are not required.
ISSN:0304-4076
1872-6895
DOI:10.1016/0304-4076(85)90133-2