Cost decompositions and the efficient subset

Rolf Färe, Hirofumi Fukuyama (), Shawna Grosskopf and Valentin Zelenyuk

Omega, 2016, vol. 62, issue C, 123-130

Abstract: This paper develops two cost decompositions based on the multiplicative Russell and additive slack-based (in)efficiency measurement frameworks. While the multiplicative cost decomposition is a straightforward extension of the standard cost decomposition, the decomposition we develop in this paper incorporates slacks directly so that efficiency is measured relative to the efficient subset. To show the applicability of our novel approach, we provide an illustration using a data set used in the literature.

Keywords: Cost efficiency; Efficient subset; Russell measure; Directional distance function; Slacks; Data envelopment analysis (DEA) (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (8)

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Related works:
Working Paper: Cost Decompositions and the Efficient Subset (2015)
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DOI: 10.1016/j.omega.2015.09.004

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