Measuring Technical Efficiency in Data Envelopment Analysis

Sahoo, Biresh and Mohapatra, Pratap (2000) Measuring Technical Efficiency in Data Envelopment Analysis. TAPMI, Manipal.

TWP26_2000_mesearing Tech.efficiency.pdf

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In this study an attempt is made to examine, using data envelopment analysis, the productivity trends in the Indian Pig Iron and Sponge Iron industryfor the period after economic liberalization. The methods of crossefficiency matrix, distribution of virtual inputs and returns to scale are also used to get further insights into the petformances of the individual units. The results show that the there has been declining efficiency trend since 1996 which could be taken as the evidence of rapid capacity addition in the early 1990s coupled with the recession in the steel sector. Though our DEA resuJI.sonpeer group and target provide limited information as to how petformance can be improved through on-site inspection of operations, these are not robust in the sense that some of Ih£ peers identified are not real peers. However, the results on cross efficiency matrix and the distribution of virtual inputs provide information concerning not only the real peers but also their truly efficient operating practices where there is high probability that both efficient as well as inefficient companies couldpossibly improve upon.

Item Type: TAPMI Working Papers
Uncontrolled Keywords: DEA; Technical Efficiency; Peer Group; Cross-Efficiency Matrix; Distribution of Virtual Inputs.
Subjects: Finance
Divisions: Finance and Strategy
Depositing User: Ms. Vanitha K
Date Deposited: 17 Nov 2018 06:52
Last Modified: 09 Jan 2019 09:04

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