This paper shows that the use of excessively aggregated organizational units in a benchmarking study may skew the evaluation. The most aggregated or consolidated units receive excessively harsh evaluations. The paper also proposes a method for compensating the possible consolidation bias by...

This book covers recent advances in efficiency evaluations, most notably Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) methods. It introduces the underlying theories, shows how to make the relevant calculations and discusses applications. The aim is to make the reader...

We analyse how the aggregation of production processes affects efficiency evaluations. A production unit can be inefficient even though all its production processes are efficient. We show how to test if observed "inefficiencies" may be caused by an aggregation and how to correct efficiency...