- University of Macedonia
mercoledì 7 marzo 2018
- Polo Santa Marta, Via Cantarane 24, Room 1.59
The aim of this paper is to derive the aggregation weights that give consistent estimates of aggregate programmatic efficiency. By using the denominator rule we show that the aggregation weights for programmatic efficiency are based on potential rather than actual output (or revenue in the multi-output case), as was the case for technical (managerial) efficiency. Potential output refers to the level of actual output adjusted for technical inefficiency and here the way efficiency is measured in the output oriented model matters. If we measure efficiency using the Farrell index, potential output would be determined by means of the pooled frontier while if we measure efficiency using the Färe, Grosskopf and Lovell index, potential output would be determined by means of the group best practice frontier.
- Data pubblicazione
12 settembre 2017