Maintaining the Regular Ultra Passum Law in data envelopment analysis

Ole Bent Olesen; John Ruggiero

doi:10.1016/j.ejor.2014.01.016

Maintaining the Regular Ultra Passum Law in data envelopment analysis

Research output: Contribution to journal › Journal article › Research › peer-review

Abstract

The variable returns to scale data envelopment analysis (DEA) model is developed with a maintained hypothesis of convexity in input-output space. This hypothesis is not consistent with standard microeconomic production theory that posits an S-shape for the production frontier, i.e. for production technologies that obey the Regular Ultra Passum Law. Consequently, measures of technical efficiency assuming convexity are biased downward. In this paper, we provide a more general DEA model that allows the S-shape.

Original language	English
Journal	European Journal of Operational Research
Volume	235
Issue number	3
Pages (from-to)	798–809
ISSN	0377-2217
DOIs	https://doi.org/10.1016/j.ejor.2014.01.016
Publication status	Published - 16. Jun 2014

Keywords

Convex hull estimation
Data envelopment analysis (DEA)
Isoquant estimation
S-shaped production function

Documents & Links

10.1016/j.ejor.2014.01.016

Cite this

@article{ba3e3382de99461b90ed5df6a098fca0,

title = "Maintaining the Regular Ultra Passum Law in data envelopment analysis",

abstract = "The variable returns to scale data envelopment analysis (DEA) model is developed with a maintained hypothesis of convexity in input-output space. This hypothesis is not consistent with standard microeconomic production theory that posits an S-shape for the production frontier, i.e. for production technologies that obey the Regular Ultra Passum Law. Consequently, measures of technical efficiency assuming convexity are biased downward. In this paper, we provide a more general DEA model that allows the S-shape.",

keywords = "Convex hull estimation, Data envelopment analysis (DEA), Isoquant estimation, S-shaped production function",

author = "Olesen, {Ole Bent} and John Ruggiero",

year = "2014",

month = jun,

day = "16",

doi = "10.1016/j.ejor.2014.01.016",

language = "English",

volume = "235",

pages = "798–809",

journal = "European Journal of Operational Research",

issn = "0377-2217",

publisher = "Elsevier",

number = "3",

}

TY - JOUR

T1 - Maintaining the Regular Ultra Passum Law in data envelopment analysis

AU - Olesen, Ole Bent

AU - Ruggiero, John

PY - 2014/6/16

Y1 - 2014/6/16

N2 - The variable returns to scale data envelopment analysis (DEA) model is developed with a maintained hypothesis of convexity in input-output space. This hypothesis is not consistent with standard microeconomic production theory that posits an S-shape for the production frontier, i.e. for production technologies that obey the Regular Ultra Passum Law. Consequently, measures of technical efficiency assuming convexity are biased downward. In this paper, we provide a more general DEA model that allows the S-shape.

AB - The variable returns to scale data envelopment analysis (DEA) model is developed with a maintained hypothesis of convexity in input-output space. This hypothesis is not consistent with standard microeconomic production theory that posits an S-shape for the production frontier, i.e. for production technologies that obey the Regular Ultra Passum Law. Consequently, measures of technical efficiency assuming convexity are biased downward. In this paper, we provide a more general DEA model that allows the S-shape.

KW - Convex hull estimation

KW - Data envelopment analysis (DEA)

KW - Isoquant estimation

KW - S-shaped production function

U2 - 10.1016/j.ejor.2014.01.016

DO - 10.1016/j.ejor.2014.01.016

M3 - Journal article

VL - 235

SP - 798

EP - 809

JO - European Journal of Operational Research

JF - European Journal of Operational Research

SN - 0377-2217

IS - 3

ER -

Maintaining the Regular Ultra Passum Law in data envelopment analysis

Abstract

Keywords

Documents & Links

Fingerprint

Cite this