| Article ID: | iaor1997764 |
| Country: | United States |
| Volume: | 42 |
| Issue: | 3 |
| Start Page Number: | 473 |
| End Page Number: | 474 |
| Publication Date: | Mar 1996 |
| Journal: | Management Science |
| Authors: | McDonald John |
| Keywords: | statistics: empirical |
Byrnes, Färe, Grosskopf and Lovell defined a decomposition of inefficiency differentials into scale and congestion components. This note shows that the decomposition may be sensitive to the order in which the two components are calculated, and, consequently, use of the decomposition may result in misleading signals being given to management.