The Library

A generalisation of the Farrell cost efficiency measure applicable to non-fully competitive settings

Tools

Camanho, A. S. and Dyson, Robert G.. (2008) A generalisation of the Farrell cost efficiency measure applicable to non-fully competitive settings. Omega-International Journal of Management Science, Vol.36 (No.1). pp. 147-162. ISSN 0305-0483

Full text not available from this repository.

Abstract

This paper enhances cost efficiency measurement methods to account for situations where the input prices can depend on negotiation or tend to qualitatively differentiate the resources available at each decision making unit. In these circumstances, there are some shortcomings in the cost efficiency measure described in the data envelopment analysis (DEA) literature. This paper proposes new models and measures for cost efficiency evaluation that overcome the limitations of the existing DEA models. The applicability of the measures developed is illustrated in the context of the analysis of bank branch performance. (c) 2006 Elsevier Ltd. All rights reserved.

Item Type: Journal Article
Subjects: H Social Sciences > HA Statistics
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Faculty of Social Sciences > Warwick Business School > Operational Research & Management Sciences
Library of Congress Subject Headings (LCSH): Data envelopment analysis, Cost effectiveness, Prices
Journal or Publication Title: Omega-International Journal of Management Science
Publisher: Pergamon-Elsevier Science Ltd
ISSN: 0305-0483
Official Date: February 2008
Volume: Vol.36
Number: No.1
Number of Pages: 16
Page Range: pp. 147-162
Identification Number: 10.1016/j.omega.2005.12.004
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access
References:

[1] Farrell MJ. The measurement of productive efficiency. Journal
of the Royal Statistical Society, Serie A 1957;120:253–81.
[2] Fare R, Grosskopf S, Lovell CAK. The measurement of
efficiency of production. Dordrecht MA: Kluwer; 1985.
[3] Cooper WW, Thompson RG, Thrall RM. Extensions and
new developments in DEA. Annals of Operations Research
1996;66:3–45.
[4] Tone K. A strange case of the cost and allocative efficiencies
in DEA. Journal of the Operational Research Society
2002;53:1225–31.
[5] Koopmans TC. Efficient allocation of resources. Econometrica
1951;19:455–65.
[6] Kuosmanen T, Cherchye L, Sipilainen T. The law of one price in
data envelopment analysis: restricting weight flexibility across
firms. European Journal of Operational Research 2004, articles
in press, available online.
[7] Charnes A, Cooper WW, Rhodes E. Measuring the efficiency
of decision making units. European Journal of Operational
Research 1978;2:429–44.
[8] Dyson RG, Allen R, Camanho AS, Podinovski VV, Sarrico CS,
Shale EA. Pitfalls and protocols in DEA. European Journal of
Operational Research 2001;132(2):245–59.
[9] Banker RD, Charnes A, Cooper WW. Some models for
estimating technical and scale inefficiencies in data envelopment
analysis. Management Science 1984;30(9):1074–92.
[10] Banker RD, Thrall RM. Estimation of returns to scale using
data envelopment analysis. European Journal of Operational
Research 1992;62:74–84.
[11] Camanho AS, Dyson RG. Cost efficiency measurement
with price uncertainty: a DEA application to bank branch
assessments. European Journal of Operational Research
2005;161(2):432–46.
URI: http://wrap.warwick.ac.uk/id/eprint/31304

Data sourced from Thomson Reuters' Web of Knowledge

Request changes or add full text files to a record

Actions (login required)

View Item View Item