This paper develops a slack-based decomposition of profit efficiency based on a direc- tional distance function. It complements Cooper, Pastor, Aparicio and Borras (2011).

The last two decades have witnessed a revival in interest in the measurement of productive efficiency pioneered by (1957) and (1951). 1978 was a watershed year in this revival with the christening of DEA by (1978) and the critique of Farrell technical efficiency in terms of axiomatic production...

This note shows that the Nerlovian profit indicator may be aggregated over firms into an industry measure of profit efficiency. The note also provides conditions under which the technical component of the indicator may also be aggregated.

In this paper we show that in order to aggregate individual efficiency scores into a group (e.g., industry) efficiency score in such a way that the multiplicative structure of further decompositions is preserved with equal weights across components, the weighted geometric mean is required. We...

In this article we revisit a recent work on on pricing DMUs by Fare, Grosskopf and Margaritis (2012) and extend it to allow for non-constant retuns to scale technologies.

This paper defines the notion of unbiased aggregation of inputs and provides a necessary and sufficient condition for this to apply.

In this paper we show that in order to aggregate individual efficiency scores into a group (e.g., industry) efficiency score, in such a way that the multiplicative structure of further decompositions is preserved with equal weights across components, the weighted geometric mean is required. We...

In this paper we propose new aggregate or ‘group’ primal and dual scale elasticity measures of an economic system (e.g., industry consisting of several firms, etc.). The main contribution of the paper is that we show under what assumptions a formal relationship between these new aggregate...