Radial & Non-radial Measures of Technical Efficiency in Data Envelopment Analysis: An Empirical Comparison

Sahoo, Biresh (2000) Radial & Non-radial Measures of Technical Efficiency in Data Envelopment Analysis: An Empirical Comparison. TAPMI, Manipal.

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Abstract

In this paper we attempt to provide theoretical justifications for distinguishing and comparing the two definitions of technical efficiency offered by Farrell and Russell. and empirically examine the two efficiencies in the context of Indian Pig Iron and Sponge Iron Industry. The empirical analysis shows thai the technical efficiency ratings of the problematic DMUs (those operating lIot ift the efficient subset of the production technology) in the radial measure of Farrei/have drasticallY8one down in the non-radial Russell measure. The weighted Russell measure is proved '10he useful when slack exists and when different inputs impact production differently. An effort has also been made to s£e how far the extremely efficient DMUs are robust in the face of input perturbations. The results indicate that only two units are robust in the face of input increase. under the assumption of constant returns to scale.

Item Type:	TAPMI Working Papers
Uncontrolled Keywords:	DEA; Efficiency; Peer Group; Excess Slacks
Subjects:	Finance
Divisions:	Finance and Strategy
Depositing User:	Ms. Vanitha K
Date Deposited:	17 Nov 2018 08:50
Last Modified:	17 Nov 2018 08:50
URI:	http://tapmi.informaticsglobal.com/id/eprint/386

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