Abstract
The measurement of productive efficiency is an issue of great interest. Since Farrell (Farrell, M.J., 1957. Journal of Royal Statistical Society, Series A 120, 253) implemented the first measure of technical efficiency, many researchers have developed new measures or have extended the already existing ones. The beginning of Data Envelopment Analysis (DEA) meant a new way of empirically measuring productive efficiency. Under some specific technologies, Farrell's measure was implemented giving rise to the first DEA models, CCR (Charnes, A., Cooper, W.W., Rhodes, E., 1978. European Journal of Operational Research 2, 429) and BCC (Banker, R.D., Charnes, A., Cooper, W.W., 1984. Management Science, 1078). The fact that these measures only account for radial inefficiency has motivated the development of the so-called Global Efficiency Measures (GEMs) (Cooper, W.W., Pastor, J.T., 1995. Working Paper, Departamento de Estadı́stica e Investigación Operativa, Universidad de Alicante, Alicante, Spain). In this paper we propose a new GEM inspired by the Russell Graph Measure of Technical Efficiency which avoids the computational and interpretative difficulties with this latter measure. Additionally, the new measure satisfies some other desirable properties.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
