Linked-cone DEA profit ratios and technical efficiency with application to Illinois coal mines

Data Envelopment Analysis (DEA) profit ratios and technical efficiency measures require separate treatment as proved in newly developed theory of Thompson and Thrall. This point is illustrated here by analysis of an example problem; it shows that DEA technical efficiency does not necessarily imply a...

Full description

Saved in:
Bibliographic Details
Published in:International journal of production economics 1995-04, Vol.39 (1), p.99-115
Main Authors: Thompson, Russell G, Dharmapala, P.S, Thrall, Robert M
Format: Article
Language:English
Subjects:
Coal mining
Data envelopment analysis
Efficiency
Mathematical models
Operations research
Ratios
Studies
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Data Envelopment Analysis (DEA) profit ratios and technical efficiency measures require separate treatment as proved in newly developed theory of Thompson and Thrall. This point is illustrated here by analysis of an example problem; it shows that DEA technical efficiency does not necessarily imply a DEA maximum profit ratio; and, vice versa, a DEA maximum profit ratio does not necessarily imply DEA technical efficiency. The essence of the mathematical framework underlying this argument is provided. Application of the concepts to Illinois coal mining data (previously reported) lends support to the need for separate treatment of DEA technical efficiency and DEA profit ratios.
ISSN:0925-5273
1873-7579
DOI:10.1016/0925-5273(94)00064-H