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We extend the Tauer (2001) and Färe et al. (2004) analyses of aggregation bias in technical efficiency measurement to multiple criteria decision analysis. We show input aggregation conditions consistent with multiple criteria evaluation of overall efficiency in conjunction with variation in...
Persistent link: https://www.econbiz.de/10015243006
The results of an experiment with simulated data show that combining inputs with different criteria (as cost, material inputs aggregates and other) increases the accuracy of the Data Envelopment Analysis (DEA) technical efficiency estimator in data sets with dimensionality problems. The positive...
Persistent link: https://www.econbiz.de/10015247487
The results of an experiment with simulated data show that using multiple positive lineal aggregators of the same inputs instead of the original variables increases the accuracy of the Data Envelopment Analysis (DEA) technical efficiency estimator in data sets beset by dimensionality problems....
Persistent link: https://www.econbiz.de/10015253950
A micro decision-making utility model under uncertainty is presented as a complementary foundation for macro coronavirus models. The micro model consists of two functions, a risk averse utility function depending on wellness and a wellness random output which is a function of the input variable...
Persistent link: https://www.econbiz.de/10013269247
A new DEA model has been introduced recently combining the primal and the dual models in order to impose strong complementary slackness conditions. It was claimed that a reference set that contains the maximum number of efficient units can then be determined. The model is very interesting as a...
Persistent link: https://www.econbiz.de/10010285566
Measuring productive efficiency is an important research strand within fields of economics, management science and operations research. One definition of efficiency is the proportional scaling needed for observations of an inefficient unit to be projected onto an efficient production function...
Persistent link: https://www.econbiz.de/10010285579
Attempts can be found in the DEA literature to identify returns to scale at efficient interior points of the production possibility set on the basis of returns to scale at points of the corresponding reference sets. However, an opposite approach is put forward in this paper, advocating that...
Persistent link: https://www.econbiz.de/10010285619
In this paper Sato’s two-level CES production function has been estimated by nonlinear regression carried out through five different methods of optimization, namely, the Hooke-Jeeves Pattern Moves (HJPM), the Hooke-Jeeves-Quasi-Newton (HJQN), the Rosenbrock-Quasi-Newton (RQN), the Differential...
Persistent link: https://www.econbiz.de/10015212866
Policy recommendations concerning optimal scale of production units often have serious implications for the restructuring of a sector, while tests of natural monopoly have important implications for regulatory structure. The piecewise linear frontier production function framework is becoming the...
Persistent link: https://www.econbiz.de/10005427053
Attempts can be found in the DEA literature to identify returns to scale at efficient interior points of the production possibility set on the basis of returns to scale at points of the corresponding reference sets. However, an opposite approach is put forward in this paper, advocating that...
Persistent link: https://www.econbiz.de/10004967611