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A Policy Oriented Multi‐Input And Multi‐Output Measure Of Overall Efficiency And Its Decomposition

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  • Lars Jonasson

Abstract

In this paper a partly new set of efficiency indexes is proposed, based on a nonparametric approach. A social concept is used with special emphasis on relevance for policy decisions. A multi‐input and multi‐output index of overall efficiency is developed and a decomposition including size efficiency is introduced. This is the first set of indexes that is aimed directly at what policy makers might find interesting to know, not at something that is close. Because of this, the proposed indexes are more general and involve fewer restrictive assumptions. Tentative examples reveal that the difference between the traditional and the adjusted indexes might be of major importance for policy decisions.

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  • Lars Jonasson, 1997. "A Policy Oriented Multi‐Input And Multi‐Output Measure Of Overall Efficiency And Its Decomposition," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 52-64, January.
    • Handle: RePEc:bla:jageco:v:48:y:1997:i:1-3:p:52-64
    DOI: 10.1111/j.1477-9552.1997.tb01130.x
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    1. Afriat, Sidney N, 1972. "Efficiency Estimation of Production Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(3), pages 568-598, October.
    2. Wesley D. Seitz, 1970. "The Measurement of Efficiency Relative to a Frontier Production Function," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 52(4), pages 505-511.
    3. Drynan, Ross G., 1987. "Allocative vs. Technical Efficiency, and Related Matters in Linear Programming," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 55(02), pages 1-8, August.
    4. Fare, Rolf & Grosskopf, Shawna, 1983. "Measuring output efficiency," European Journal of Operational Research, Elsevier, vol. 13(2), pages 173-179, June.
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