From partial derivatives of DEA frontiers to marginal products, marginal rates of substitution, and returns to scale

Archive ouverte : Article de revue

Ouellette, Pierre | Vigeant, Stephane

Edité par HAL CCSD ; Elsevier

International audience. The characterization of a technology, from an economic point of view, often uses the first derivatives of either the transformation or the production function. In a parametric setting, these quantities are readily available as they can be easily deduced from the first derivatives of the specified function. In the standard framework of data envelopment analysis (DEA) models these quantities are not so easily obtained. The difficulty resides in the fact that marginal changes of inputs and outputs might affect the position of the frontier itself while the calculation of first derivatives for economic purposes assumes that the frontier is held constant. We develop here a procedure to recover first derivatives of transformation functions in DEA models and we show how we can evacuate the problem of the (marginal) shift of the frontier. We show how the knowledge of the first derivatives of the frontier estimated by DEA can be used to deduce and compute marginal products, marginal rates of substitution, and returns to scale for each decision making unit (DMU) in the sample.

Consulter en ligne

Suggestions

Du même auteur

α-returns to scale with quasi-fixed inputs: an application to Québec hospitals | Blavet, Thomas

α-returns to scale with quasi-fixed inputs: an application to Québec hospit...

Archive ouverte: Article de revue

Blavet, Thomas | 2023-01-23

International audience. This paper focuses on the determination and estimation of the optimal size of hospitals. To determine the optimal size of a production unit, we use the measurement of returns to scale (RTS) a...

Conditional Factor Demands and Positive Output Effects: A Necessary and Sufficient Condition | Ouellette, Pierre

Conditional Factor Demands and Positive Output Effects: A Necessary and Suf...

Archive ouverte: Article de revue

Ouellette, Pierre | 2017-07-08

International audience. The duality between cost and production functions has been thoroughly studied and is well-known. A given set ofassumptions on the technology implies a set of restrictions on the Jacobian of t...

A Note on Conditional Factor Demands and Cost Function | Vigeant, Stephane

A Note on Conditional Factor Demands and Cost Function

Archive ouverte: Article de revue

Vigeant, Stephane | 2017

International audience

Du même sujet

Measuring the Capacity Utilization of Public District Hospitals in Tunisia: Using Dual Data Envelopment Analysis Approach | Arfa, Chokri

Measuring the Capacity Utilization of Public District Hospitals in Tunisia:...

Archive ouverte: Article de revue

Arfa, Chokri | 2016-06

International audience. Background Public district hospitals (PDHs) in Tunisia are not operating at full plant capacity and underutilize their operating budget. Methods Individual PDHs capacity utilization (CU...

Efficiency of judicial conciliation activities in French courts: Evidence from a bad-output Data Envelopment Analysis (DEA) framework | Belarouci, Matthieu

Efficiency of judicial conciliation activities in French courts: Evidence f...

Archive ouverte: Communication dans un congrès

Belarouci, Matthieu | 2021-01-20

International audience. This paper uses a DEA bad-output framework to assess the efficiency of court settlement activities and examine how efficiency depends on both the characteristics of the conciliators and on in...

Introduction to the theory and application of data envelopment analysis : a foundation text with integrated software / by Emmanuel Thanassoulis,... | Thanassoulis, Emmanuel. Auteur

Introduction to the theory and application of data envelopment analysis : a...

Livre | Thanassoulis, Emmanuel. Auteur | 2001

Introduction to data envelopment analysis and its uses : with DEA-solver software and references / William W. Cooper,... Lawrence M. Seiford,... Kaoru Tone,... | Cooper, William Wager (1914-2012). Auteur

Introduction to data envelopment analysis and its uses : with DEA-solver so...

Livre | Cooper, William Wager (1914-2012). Auteur | 2006

A decomposition of profit loss under output price uncertainty | Boussemart, Jean-Philippe

A decomposition of profit loss under output price uncertainty

Archive ouverte: Article de revue

Boussemart, Jean-Philippe | 2015-06

International audience. In this paper, firm profit loss is decomposed as the sum of two terms related to the output price uncertainty (price expectation error and risk preference), plus one extra term expressing tec...

Assessing overall, technical, and scale efficiency among home health care agencies | Valdmanis, Vivian G.

Assessing overall, technical, and scale efficiency among home health care a...

Archive ouverte: Article de revue

Valdmanis, Vivian G. | 2016-01

International audience. While home health care agencies (HHAs) play a vital role in the production of health, little research has been performed gauging their efficiency. Employing a robust approach to data envelopm...

Chargement des enrichissements...