Input Efficiency Measures: A Generalised, Encompassing Formulation

Laurent Cavaignac (1) , Walter Briec (2) , Kristiaan Kerstens (3, 4)

1 CAEPEM - Centre d'Analyse de l'Efficience et de la Performance en Economie et Management
2 LAMPS - LAboratoire de Modélisation Pluridisciplinaire et Simulations
3 Department of Economics
4 LEM - Lille économie management - UMR 9221

This contribution defines a new generalized input efficiency measure which encompasses and thus links four well-known input efficiency measures: the Debreu-Farrell measure, the Färe-Lovell measure, the asymmetric Färe measure, and the multiplicative Färe-Lovell measure. The axiomatic properties of this new measure are studied. The generalized input efficiency measure naturally leads to the definition of new measures as special cases. It also provides a general framework for testing the choice of efficiency measures. Examples of mathematical programming models in specific cases are established to illustrate this new measure.

Domaines: Sciences de l'Homme et Société; Economies et finances

Laurent Cavaignac, Walter Briec, Kristiaan Kerstens. Input Efficiency Measures: A Generalised, Encompassing Formulation. Operations Research, 2020, 68 (6), pp.1836-1849. ⟨10.1287/opre.2019.1963⟩. ⟨hal-02496082⟩