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Input, output and graph technical efficiency measures on non-convex FDH models with various scaling laws: An integrated approach based upon implicit enumeration algorithms

Research paper by Walter Briec, Kristiaan Kerstens

Indexed on: 01 Jun '06Published on: 01 Jun '06Published in: TOP



Abstract

In a recent article, Briec, Kerstens and Vanden Eeckaut (2004) develop a series of nonparametric, deterministic non-convex technologies integrating traditional returns to scale assumptions into the non-convex FDH model. They show, among other things, how the traditional technical input efficiency measure can be analytically derived for these technology specifications. In this paper, we develop a similar approach to calculate output and graph measures of technical efficiency and indicate the general advantage of such solution strategy via enumeration. Furthermore, several analytical formulas are established and some algorithms are proposed relating the three measurement orientations to one another.