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Input aggregation bias in technical efficiency with multiple criteria analysis

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  • A. M. Aldanondo
  • V. L. Casasnovas

Abstract

We extend the Tauer (2001) and F�re 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 the variation in aggregation bias.

Suggested Citation

  • A. M. Aldanondo & V. L. Casasnovas, 2015. "Input aggregation bias in technical efficiency with multiple criteria analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 22(6), pages 430-435, April.
    • Handle: RePEc:taf:apeclt:v:22:y:2015:i:6:p:430-435
    DOI: 10.1080/13504851.2014.948666
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    1. repec:bla:scandj:v:85:y:1983:i:2:p:181-90 is not listed on IDEAS
    2. Toshiyuki Sueyoshi, 1999. "DEA Duality on Returns to Scale (RTS) in Production and Cost Analyses: An Occurrence of Multiple Solutions and Differences Between Production-Based and Cost-Based RTS Estimates," Management Science, INFORMS, vol. 45(11), pages 1593-1608, November.
    3. Loren Tauer, 2001. "Input aggregation and computed technical efficiency," Applied Economics Letters, Taylor & Francis Journals, vol. 8(5), pages 295-297.
    4. Tone, Kaoru & Tsutsui, Miki, 2010. "An epsilon-based measure of efficiency in DEA - A third pole of technical efficiency," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1554-1563, December.
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    8. Benjamin Hampf, 2014. "Separating environmental efficiency into production and abatement efficiency: a nonparametric model with application to US power plants," Journal of Productivity Analysis, Springer, vol. 41(3), pages 457-473, June.
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    Cited by:

    1. Aldanondo, Ana M. & Casasnovas, Valero L., 2015. "More is better than one: the impact of different numbers of input aggregators in technical efficiency estimation," MPRA Paper 64120, University Library of Munich, Germany.
    2. Aldanondo-Ochoa, Ana M. & Casasnovas-Oliva, Valero L. & Almansa-Sáez, M. Carmen, 2017. "Cross-constrained Measuring the Cost-environment Efficiency in Material Balance Based Frontier Models," Ecological Economics, Elsevier, vol. 142(C), pages 46-55.
    3. Aldanondo, Ana M. & Casasnovas, Valero L. & Almansa, M. Carmen, 2016. "Cost-constrained measures of environmental efficiency: a material balance approach," MPRA Paper 72490, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D20 - Microeconomics - - Production and Organizations - - - General

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