Technical Efficiency (TE) is a basic tool to determine the factors that slow down production. TE aims to evaluate and compare the operating performance of a set of production units, such as Companies, Offices, Hospitals, Banks, Schools, Transport Systems, etc. The literature on the measurement of Technical Efficiency provides a range of methodologies. This paper presents an overview of the literature on the studies, comparing the main two approaches, namely Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA). DEA is the model most popular with many applications in various domains. The purpose of this paper is to provide a significant critical overview on the main pros and cons of measuring technical efficiency because less effort has been directed toward a competing efficiency model such as SFA. The target of this study is to expose critical observations to give an opportunity to be more careful in choosing the most appropriate method for evaluating Technical Efficiency.
Technical efficiency: a critical overview of the methods / Scippacercola, Sergio; Sepe, Enrica. - (2016). (Intervento presentato al convegno Italian-Romanian Bilateral Conference on Statistical Methods for Service Evaluation tenutosi a Bucarest nel 17 june 2016).
Technical efficiency: a critical overview of the methods
SCIPPACERCOLA, SERGIO;SEPE, ENRICA
2016
Abstract
Technical Efficiency (TE) is a basic tool to determine the factors that slow down production. TE aims to evaluate and compare the operating performance of a set of production units, such as Companies, Offices, Hospitals, Banks, Schools, Transport Systems, etc. The literature on the measurement of Technical Efficiency provides a range of methodologies. This paper presents an overview of the literature on the studies, comparing the main two approaches, namely Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA). DEA is the model most popular with many applications in various domains. The purpose of this paper is to provide a significant critical overview on the main pros and cons of measuring technical efficiency because less effort has been directed toward a competing efficiency model such as SFA. The target of this study is to expose critical observations to give an opportunity to be more careful in choosing the most appropriate method for evaluating Technical Efficiency.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
