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The decomposition of efficiency in parallel network production models

dc.contributor.authorPeyrache, Antonio
dc.contributor.authorSilva, Maria C. A.
dc.date.accessioned2024-06-05T16:18:58Z
dc.date.available2024-06-05T16:18:58Z
dc.date.issued2024-09
dc.description.abstractKao (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.pt_PT
dc.description.versioninfo:eu-repo/semantics/publishedVersionpt_PT
dc.identifier.doi10.1016/j.omega.2024.103084pt_PT
dc.identifier.eid85190243258
dc.identifier.issn0305-0483
dc.identifier.urihttp://hdl.handle.net/10400.14/45410
dc.identifier.wos001229691700001
dc.language.isoengpt_PT
dc.peerreviewedyespt_PT
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/pt_PT
dc.subjectData envelopment analysispt_PT
dc.subjectDirectional distance functionpt_PT
dc.subjectFree disposal hullpt_PT
dc.subjectInefficiencypt_PT
dc.subjectNetworkspt_PT
dc.titleThe decomposition of efficiency in parallel network production modelspt_PT
dc.typejournal article
dspace.entity.typePublication
oaire.citation.titleOmegapt_PT
rcaap.rightsopenAccesspt_PT
rcaap.typearticlept_PT

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