IDEAS home Printed from https://ideas.repec.org/p/ags/rvaewp/24190.html
   My bibliography  Save this paper

Process Aggregation and Efficiency

Author

Listed:
  • Bogetoft, Peter

Abstract

We analyse how the aggregation of production processes affects efficiency evaluations. A production unit can be inefficient even though all its production processes are efficient. We show how to test if observed "inefficiencies" may be caused by an aggregation and how to correct efficiency measures for such aggregation generated inefficiencies. The tests and the adjusted efficiency measurement programs involve hypothetical dis-aggregations designed to put the evaluated unit in its best possible light.

Suggested Citation

  • Bogetoft, Peter, 1999. "Process Aggregation and Efficiency," Unit of Economics Working Papers 24190, Royal Veterinary and Agricultural University, Food and Resource Economic Institute.
    • Handle: RePEc:ags:rvaewp:24190
    DOI: 10.22004/ag.econ.24190
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/24190/files/wp990004.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.24190?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Peter Bogetoft & Jens Hougaard, 1999. "Efficiency Evaluations Based on Potential (Non-Proportional) Improvements," Journal of Productivity Analysis, Springer, vol. 12(3), pages 233-247, November.
    2. Luenberger, David G., 1992. "Benefit functions and duality," Journal of Mathematical Economics, Elsevier, vol. 21(5), pages 461-481.
    3. Boaz Golany, 1988. "Note---A Note on Including Ordinal Relations Among Multipliers in Data Envelopment Analysis," Management Science, INFORMS, vol. 34(8), pages 1029-1033, August.
    4. Peter Bogetoft & Dexiang Wang, 2005. "Estimating the Potential Gains from Mergers," Journal of Productivity Analysis, Springer, vol. 23(2), pages 145-171, May.
    5. Bogetoft, Peter, 1995. "Incentives and productivity measurements," International Journal of Production Economics, Elsevier, vol. 39(1-2), pages 67-77, April.
    6. Chambers, Robert G., 1995. "Benefit and Distance Functions," Working Papers 197820, University of Maryland, Department of Agricultural and Resource Economics.
    7. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    8. Agha Iqbal Ali & Wade D. Cook & Lawrence M. Seiford, 1991. "Strict vs. Weak Ordinal Relations for Multipliers in Data Envelopment Analysis," Management Science, INFORMS, vol. 37(6), pages 733-738, June.
    9. Charnes, A. & Cooper, W. W. & Rhodes, E., 1979. "Measuring the efficiency of decision-making units," European Journal of Operational Research, Elsevier, vol. 3(4), pages 339-338, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peter Bogetoft & Dexiang Wang, 2005. "Estimating the Potential Gains from Mergers," Journal of Productivity Analysis, Springer, vol. 23(2), pages 145-171, May.
    2. Bogetoft, Peter & Wang, Dexiang, 1999. "Estimating the Potential Gains from Mergers: The Danish Agricultural Extension Services," Unit of Economics Working Papers 24207, Royal Veterinary and Agricultural University, Food and Resource Economic Institute.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Peter Bogetoft & Kurt Nielsen, 2005. "Internet Based Benchmarking," Group Decision and Negotiation, Springer, vol. 14(3), pages 195-215, May.
    2. Peter Bogetoft, 2000. "DEA and Activity Planning under Asymmetric Information," Journal of Productivity Analysis, Springer, vol. 13(1), pages 7-48, January.
    3. Bogetoft, Peter & Leth Hougaard, Jens, 2004. "Super efficiency evaluations based on potential slack," European Journal of Operational Research, Elsevier, vol. 152(1), pages 14-21, January.
    4. Korhonen, Pekka J. & Dehnokhalaji, Akram & Nasrabadi, Nasim, 2018. "A lexicographic radial projection onto the efficient frontier in Data Envelopment Analysis," European Journal of Operational Research, Elsevier, vol. 265(3), pages 1005-1012.
    5. Pereira, Miguel Alves & Camanho, Ana Santos & Figueira, José Rui & Marques, Rui Cunha, 2021. "Incorporating preference information in a range directional composite indicator: The case of Portuguese public hospitals," European Journal of Operational Research, Elsevier, vol. 294(2), pages 633-650.
    6. Peter Bogetoft & Dexiang Wang, 2005. "Estimating the Potential Gains from Mergers," Journal of Productivity Analysis, Springer, vol. 23(2), pages 145-171, May.
    7. Francisco Pedraja-Chaparro & Javier Salinas-Jimenez & Peter Smith, 1997. "On the Role of Weight Restrictions in Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 8(2), pages 215-230, May.
    8. William W. Cooper & Kyung Sam Park & Gang Yu, 2001. "An Illustrative Application of Idea (Imprecise Data Envelopment Analysis) to a Korean Mobile Telecommunication Company," Operations Research, INFORMS, vol. 49(6), pages 807-820, December.
    9. Ströhl, Florian & Borsch, Erik & Souren, Rainer, 2018. "Integration von Gewichtsrestriktionen in das DEA-Modell nach Charnes, Cooper und Rhodes: Exemplarische Optionen und Auswirkungen," Ilmenauer Schriften zur Betriebswirtschaftslehre, Technische Universität Ilmenau, Institut für Betriebswirtschaftslehre, volume 3, number 32018, September.
    10. Wade Cook & Dan Chai & John Doyle & Rodney Green, 1998. "Hierarchies and Groups in DEA," Journal of Productivity Analysis, Springer, vol. 10(2), pages 177-198, October.
    11. Subhash C. Ray, 2014. "Data Envelopment Analysis: An Overview," Working papers 2014-33, University of Connecticut, Department of Economics.
    12. Tsionas, Mike & Parmeter, Christopher F. & Zelenyuk, Valentin, 2023. "Bayesian Artificial Neural Networks for frontier efficiency analysis," Journal of Econometrics, Elsevier, vol. 236(2).
    13. Mette Asmild & Jens Hougaard & Dorte Kronborg & Hans Kvist, 2003. "Measuring Inefficiency Via Potential Improvements," Journal of Productivity Analysis, Springer, vol. 19(1), pages 59-76, January.
    14. T Joro & E-J Viitala, 2004. "Weight-restricted DEA in action: from expert opinions to mathematical models," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(8), pages 814-821, August.
    15. Jesus Pastor & C. Lovell & Juan Aparicio, 2012. "Families of linear efficiency programs based on Debreu’s loss function," Journal of Productivity Analysis, Springer, vol. 38(2), pages 109-120, October.
    16. Andersen, Jesper Levring & Bogetoft, Peter, 2003. "Quota Trading and Profitability: Theoretical Models and Applications to Danish Fisheries," Unit of Economics Working Papers 24180, Royal Veterinary and Agricultural University, Food and Resource Economic Institute.
    17. T. Joro & E-J. Viitala, 1999. "The Efficiency of Public Forestry Organizations: A Comparison of Different Weight Restriction Approaches," Working Papers ir99059, International Institute for Applied Systems Analysis.
    18. Huang, Zhimin & Li, Susan X., 1996. "Dominance stochastic models in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 95(2), pages 390-403, December.
    19. Bogetoft, Peter & Wittrup, Jesper, 2021. "Benefit-of-the-doubt approach to workload indicators: Simplifying the use of case weights in court evaluations," Omega, Elsevier, vol. 103(C).
    20. Krishna Kumar, C. & Sinha, Bani K., 1999. "Efficiency based production planning and control models," European Journal of Operational Research, Elsevier, vol. 117(3), pages 450-469, September.

    More about this item

    Keywords

    Production Economics;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:rvaewp:24190. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/foikudk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.