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Efficiency decompositions for heterogeneous technologies
This paper examines firms operating under different technologies but under a common metatechnology and provides a decomposition of their efficiency into input-invariant and output-invariant components. To achieve this, it reviews known definitions of technical and scale efficiency and provides alter...
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Published in: | European journal of operational research 2009-11, Vol.199 (1), p.209-218 |
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Main Authors: | , , |
Format: | Article |
Language: | English |
Subjects: | |
Citations: | Items that this one cites Items that cite this one |
Online Access: | Get full text |
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Summary: | This paper examines firms operating under different technologies but under a common metatechnology and provides a decomposition of their efficiency into input-invariant and output-invariant components. To achieve this, it reviews known definitions of technical and scale efficiency and provides alternative expressions, which incorporate a firm operating at the most productive scale size. By extending this approach, analogous decompositions are derived for the gap between two technologies and the (technical) efficiency difference between two firms operating under two distinct technologies or metatechnologies. Two indicative case-studies are also presented in order to illustrate the applicability of the proposed framework. |
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ISSN: | 0377-2217 1872-6860 |
DOI: | 10.1016/j.ejor.2008.11.015 |