Abstract
The purpose of this paper is to discuss some of the conclusions in a recent paper by Finn Førsund entitled "Cross Efficiency: A Critique". Finn Førsund is criticizing cross-efficiency for lack of economic foundation. I build on extended facet analysis to provide an economic interpretation of each of the different cross-efficiency scores that enters into the "peers' appraisal cross-efficiency averages" of unit j, denoted ECOL(j) in the paper. However, when I consider this new economic interpretation, I end up agreeing with Finn Førsund that it is very difficult to see any meaningful interpretation of these "peers' appraisal cross-efficiency averages".
| Original language | English |
|---|---|
| Journal | The Data Envelopment Analysis Journal |
| Volume | 4 |
| Issue number | 1 |
| Pages (from-to) | 27-65 |
| Number of pages | 38 |
| ISSN | 2161-1823 |
| DOIs | |
| Publication status | Published - 2018 |