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A new criterion for technical efficiency measures: non-monotonicity across dimensions axioms

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  • Kristiaan Kerstens

    (LABORES, Université Catholique de Lille, Lille, France)

  • Philippe Vanden Eeckaut

    (Institut de Statistique, Université Catholique de Louvain, Louvain-la-Neuve, Belgium)

Abstract

Based on non-parametric deterministic production technologies radial and non-radial measures of technical efficiency are evaluated using properties guaranteeing insensitivity to the dimensionality of technology. These new axioms are important in empirical research and may especially prevent manipulation of results when implementing these benchmark methodologies in private or public organizations. An empirical example illustrates to which extent a series of radial and non-radial technical efficiency measures satisfies the proposed axioms. Copyright © 1999 John Wiley & Sons, Ltd.

Suggested Citation

  • Kristiaan Kerstens & Philippe Vanden Eeckaut, 1999. "A new criterion for technical efficiency measures: non-monotonicity across dimensions axioms," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 20(1), pages 45-59.
    • Handle: RePEc:wly:mgtdec:v:20:y:1999:i:1:p:45-59
    DOI: 10.1002/(SICI)1099-1468(199902)20:1<45::AID-MDE912>3.0.CO;2-B
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    References listed on IDEAS

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    2. Lehmann, Erik & Warning, Susanne, 2002. "Teaching or research? What affects the efficiency of universities," Discussion Papers, Series I 322, University of Konstanz, Department of Economics.
    3. Colin Glass, J. & McCallion, Gillian & McKillop, Donal G. & Rasaratnam, Syamarlah & Stringer, Karl S., 2006. "Implications of variant efficiency measures for policy evaluations in UK higher education," Socio-Economic Planning Sciences, Elsevier, vol. 40(2), pages 119-142, June.
    4. K. Obeng, 2011. "Indirect production function and the output effect of public transit subsidies," Transportation, Springer, vol. 38(2), pages 191-214, March.
    5. McKillop, D. G. & Glass, J. C. & Ferguson, C., 2002. "Investigating the cost performance of UK credit unions using radial and non-radial efficiency measures," Journal of Banking & Finance, Elsevier, vol. 26(8), pages 1563-1591, August.
    6. Lehmann, Erik E. & Warning, Susanne, 2010. "The impact of regional endowment and university characteristics on university efficiency," UO Working Papers 04-10, University of Augsburg, Chair of Management and Organization.

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