Abstract
Measurement of total factor productivity in nonmarket systems has attracted some attention in current research. Given the observed values of inputs and outputs for such systems, the problem of measurement arises due to three major reasons. First, the inputs and outputs may not have for the most part any observable market prices; hence the imputation of an equilibrium market model is not directly available. Second, the production set to which the input and output vectors belong is not directly identifiable from the observed data set; also the input-output data may be subject to a stochastic generating mechanism. Third, the units may not be profit oriented, where profit is a scalar measure of performance.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Charnes, A., Cooper, W.S. and E. Rhodes. Measuring the efficiency of decision making units. European Journal of Operational Research 2 (1978), 429–444.
Charnes, A. and Cooper, W.W. Management science relations for evaluation and management accountability. Journal of Enterprise Management 2 (1980), 143–162.
Banker, R.D., Charnes, A., Cooper, W.W. and Schinnar, A.P. A bi-extremal principle for frontier estimation and efficiency evaluation. Management Science 27 (1981), 1370–1382.
Farrell, M.J. and Fieldhouse, M. Estimating efficiency in production functions under increasing returns to scale. Journal of Royal Statistical Society. Series A 125 (1962), 252–267.
Bowlin, W.F., Charnes, A., Cooper, W.W. and Sherman, H.D. Data envelopment analysis and regression approaches to efficiency estimation and evaluation. Paper presented at Fourth Annual Conference on Current Issues in Productity held at Cornell University, Ithaca, New York, November 30, 1982.
Debreu, G. The coefficient of resource utilization. Econometrica 49 (1951), 273–292.
Diewert, W.E. The measurement of waste within the production sector of an open economy. Scandinavian Journal of Economics 85 (1983), 159–179.
Hanoch, G. and Rothschild. Testing the assumptions of production theory: a nonparametric approach. Journal of Political Economy 80 (1972), 256–275.
Diewert, W.E. and Parkan, C. Linear programming tests of regularity conditions for production function, in Quantitative Studies on Production and Prices. Wurzburg, Austria: Physica-Verlag, 1983.
Sengupta, J.K. and Sfeir, R.E. Production frontier estimates of scale in public schools in California. Economics of Education Review 5, No. 3, 1986.
Afriat, S.N. Efficiency estimation of production functions. International Economic Review 13 (1972), 568–598.
Johansen, L. Simple and general nonsubstitution theorems for input-output models. Journal of Economic Theory 5 (1972), 383–394.
Timmer, C.P. Using a probabilstic frontier production function to measure technical efficiency. Journal of Political Economy 79 (1971), 776–794.
Aigner, D.J. and Chu, S.F. On estimating the industry production function. American Economic Review 58 (1968), 826–839
Nunamaker, T.R. Using data envelopment analysis to measure the efficiency of monprofit organizations: a critical evaluation. Managerial and Decision Economics 6(1985), 50–58.
Peleg, B. and Yaari, M.E. A price characterization of efficient random variables. Econometrica43 (1975), 283–292 (1975).
J.K. Sengupta. Decision Models in Stochastic Programming. North Holland, New York, 1982.
Aigner, D., Lovell, C. and Schmidt, P. Formulation and estimation of stochastic frontier production function models. Journal of Econometrics 6 (1977), 21–37.
Sengupta, J.K. Information and efficiency in economic decision. Dordrecht: Martinus Nijhoff Publishers, 1985, ch. 12.
Sengupta, J.K. Production frontier estimation to measure efficiency: a critical evaluation in the light of data envelopment analysis. To appear in: Managerial and Decision Economics, 1986.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 1986 Springer Science+Business Media Dordrecht
About this chapter
Cite this chapter
Sengupta, J.K. (1986). Efficiency Measurement in Nonmarket Systems Through Data Envelopment Analysis. In: Stochastic Optimization and Economic Models. Theory and Decision Library, vol 2. Springer, Dordrecht. https://doi.org/10.1007/978-94-017-3085-3_7
Download citation
DOI: https://doi.org/10.1007/978-94-017-3085-3_7
Publisher Name: Springer, Dordrecht
Print ISBN: 978-90-481-8426-2
Online ISBN: 978-94-017-3085-3
eBook Packages: Springer Book Archive