Piecewise loglinear frontier and log efficiency measures

This paper shows that the Sueyoshi and Chang remedy for Charnes et al multiplicative (or log) efficiency measure is not unit invariant, and Banker and Maindiratta’s approach should use positive-multiplier loglinear production frontiers to evaluate decision-making-units. The paper also proposes a distance-oriented efficiency measure: the distance efficiency measure, which for the case of constant output and the case of linearly homogeneous production technology is unit invariant.