Article ID: | iaor20063232 |
Country: | Netherlands |
Volume: | 168 |
Issue: | 2 |
Start Page Number: | 450 |
End Page Number: | 462 |
Publication Date: | Jan 2006 |
Journal: | European Journal of Operational Research |
Authors: | Obel Brge, Bogetoft Peter, Fre Rolf |
Keywords: | organization |
We discuss how to measure allocative efficiency without presuming technical efficiency. This is relevant when it is easier to introduce reallocations than improvements of technical efficiency. We compare the approach to the traditional one of assuming technical efficiency before measuring allocative efficiency. In particular, we develop necessary and sufficient conditions in the technology to ensure consistent measures, we suggest alternative interpretations of the approaches, and we relate them to motivational and organizational change perspectives.