Ranking production units according to marginal efficiency contribution
Research output: Working paper
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Ranking production units according to marginal efficiency contribution. / Ghiyasi, Mojtaba; Hougaard, Jens Leth.
Department of Food and Resource Economics, University of Copenhagen, 2014.Research output: Working paper
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TY - UNPB
T1 - Ranking production units according to marginal efficiency contribution
AU - Ghiyasi, Mojtaba
AU - Hougaard, Jens Leth
PY - 2014
Y1 - 2014
N2 - League tables associated with various forms of service activities from schools to hospitals illustrate the public need for ranking institutions by their productive performance. We present a new method for ranking production units which is based on each units marginal contribution to the technical efficiency of various “mergers” relative to a common reference technology. The approach is radically different from the usual one based on super-efficiency indexes in DEA. We illustrate the mechanics of our method by a series of numerical examples and further demonstrate that our new index inherits all relevant and desirable properties of the Farrell efficiency index upon which it is constructed.
AB - League tables associated with various forms of service activities from schools to hospitals illustrate the public need for ranking institutions by their productive performance. We present a new method for ranking production units which is based on each units marginal contribution to the technical efficiency of various “mergers” relative to a common reference technology. The approach is radically different from the usual one based on super-efficiency indexes in DEA. We illustrate the mechanics of our method by a series of numerical examples and further demonstrate that our new index inherits all relevant and desirable properties of the Farrell efficiency index upon which it is constructed.
M3 - Working paper
T3 - MSAP Working Paper Series
BT - Ranking production units according to marginal efficiency contribution
PB - Department of Food and Resource Economics, University of Copenhagen
ER -
ID: 123832941