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Technical efficiency bias caused by intra-input aggregation in data envelopment analysis

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  • Darold Barnum
  • John Gleason

Abstract

The study shows that technical efficiency scores in Data Envelopment Analysis are biased by linear aggregation of the quantities of the same type of input that are used by all outputs (intra-input aggregation). Fare et al. 's (2004) models are expanded to account for this additional bias, and the extent of its impact on reported technical efficiency scores is commented on.

Suggested Citation

  • Darold Barnum & John Gleason, 2005. "Technical efficiency bias caused by intra-input aggregation in data envelopment analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 12(13), pages 785-788.
    • Handle: RePEc:taf:apeclt:v:12:y:2005:i:13:p:785-788
    DOI: 10.1080/13504850500365624
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    References listed on IDEAS

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    1. Loren Tauer, 2001. "Input aggregation and computed technical efficiency," Applied Economics Letters, Taylor & Francis Journals, vol. 8(5), pages 295-297.
    2. Rolf Fare & Valentin Zelenyuk, 2002. "Input aggregation and technical efficiency," Applied Economics Letters, Taylor & Francis Journals, vol. 9(10), pages 635-636.
    3. Rolf Fare & Shawna Grosskopf & Valentin Zelenyuk, 2004. "Aggregation bias and its bounds in measuring technical efficiency," Applied Economics Letters, Taylor & Francis Journals, vol. 11(10), pages 657-660.
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    Cited by:

    1. Yifei Zhang & Sheng Li & Fang Zhang, 2020. "Does an Emissions Trading Policy Improve Environmental Efficiency? Evidence from China," Sustainability, MDPI, vol. 12(6), pages 1-16, March.
    2. Darold T. Barnum & John M. Gleason, 2007. "Technical efficiency bias in data envelopment analysis caused by intra-output aggregation," Applied Economics Letters, Taylor & Francis Journals, vol. 14(9), pages 623-626.
    3. Barnum, Darold T. & Karlaftis, Matthew G. & Tandon, Sonali, 2011. "Improving the efficiency of metropolitan area transit by joint analysis of its multiple providers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 1160-1176.
    4. Darold Barnum & John Gleason, 2006. "Measuring efficiency in allocating inputs among outputs with DEA," Applied Economics Letters, Taylor & Francis Journals, vol. 13(6), pages 333-336.

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