Efficiency vectors, efficiency and performance measures: new methods for ranking efficient organizational units

Efficiency vectors, efficiency and performance measures: new methods for ranking efficient organizational units

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Article ID: iaor200950392
Country: Netherlands
Volume: 30
Issue: 2
Start Page Number: 99
End Page Number: 106
Publication Date: Oct 2008
Journal: Journal of Productivity Analysis
Authors:
Keywords: statistics: data envelopment analysis, production
Abstract:

We present and discuss measures for analyzing productivity in deterministic frontier models. A new efficiency measure is introduced allowing for discrimination among efficient organizational units. In addition, a new performance measure for analyzing productivity of organizational units is presented. This measure fulfills various properties of efficiency measures but relaxes the indicator property. Both new approaches are based on the development of efficiency vectors which is a new vector measure for measuring efficiency. The vector components are efficiency measures related to subsets of a production possibility set. The new approaches are applied in the context of data envelopment analysis.

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