Percorrer por autor "Peyrache, Antonio"
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- Efficiency decomposition for multi-level multi-components production technologiesPublication . Peyrache, Antonio; Silva, Maria C. A.This paper addresses the efficiency measurement of firms composed by multiple components, and assessed at different decision levels. In particular it develops models for three levels of decision/production: the subunit (production division/process), the DMU (firm) and the industry (system). For each level, inefficiency is measured using a directional distance function and the developed measures are contrasted with existing radial models. The paper also investigates how the efficiency scores computed at different levels are related to each other by proposing a decomposition into exhaustive and mutually exclusive components. The proposed method is illustrated using data on Portuguese hospitals. Since most of the topics addressed in this paper are related to more general network structures, avenues for future research are proposed and discussed.
- The decomposition of efficiency in parallel network production modelsPublication . Peyrache, Antonio; Silva, Maria C. A.Kao (2012) proposed a method to decompose DMU efficiency into sub-unit efficiencies for parallel production systems. We provide a numerical example showing that the proposed method can yield negative sub-unit efficiency scores under variable returns to scale, against common sense and standard postulates requiring this score to be non-negative. As a solution, we propose a decomposition based on the directional distance function that does not suffer from this problem. In particular, we recognize that the overall inefficiency of the DMU is composed of the sub-units technical inefficiencies and a reallocation inefficiency component. The proposed method can be also applied to non-convex technologies, therefore providing a more general method to implement such a decomposition. Given the connection between the directional distance function and slack-based efficiency measurement, the method can easily be extended to this case as well.