Incorporating the Operating Environment Into a Nonparametric Measure of Technical Efficiency
The ability of a production unit to transform inputs into outputs is influenced by its technical efficiency and external operating environment. This paper introduces a nonparametric, linear programming, frontier procedure for obtaining a measure of managerial efficiency that controls for exogenous features of the operating environment. The approach also provides statistical tests of the effects of external conditions on the efficient use of each individual input (for an input oriented model) or for each individual output (for an output oriented model). The procedure is illustrated for a sample of nursing homes. Copyright Kluwer Academic Publishers 1999
Year of publication: |
1999
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Authors: | Fried, Harold ; Schmidt, Shelton ; Yaisawarng, Suthathip |
Published in: |
Journal of Productivity Analysis. - Springer. - Vol. 12.1999, 3, p. 249-267
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Publisher: |
Springer |
Subject: | External operating environment | nonparametric linear programming | composite managerial efficiency |
Saved in:
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