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dc.contributor.authorFørsund, Finn R.en_US
dc.date.accessioned2011-07-01T08:42:49Z-
dc.date.available2011-07-01T08:42:49Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/47299-
dc.description.abstractMeasuring productive efficiency is an important research strand within fields of economics, management science and operations research. One definition of efficiency is the proportional scaling needed for observations of an inefficient unit to be projected onto an efficient production function and another definition is a ratio index of weighted outputs on weighted inputs. When linear programming is used to estimate efficiency the two definitions give identical results due to the fundamental duality of linear programming. Empirical applications of DEA using linear programming showed a prevalence of zero weights leading to questioning the consequence for the efficiency score estimate based on the ratio definition. Early literature on weight restrictions is exclusively based on the ratio efficiency. It was stated that variables with zero weights had no influence on the efficiency score, in spite of the alleged importance of the variables. This has been one motivation for introducing restrictions on weights. Another empirical result was that often there were too many efficient units. This problem could also be overcome by introducing weight restrictions. Weight restrictions were said to introduce values for inputs and outputs. The paper makes a critical examinations of these claims based on defining efficiency relative to a frontier production function.en_US
dc.language.isoengen_US
dc.publisherDep. of Economics, Univ. of Oslo Osloen_US
dc.relation.ispartofseriesMemorandum // Department of Economics, University of Oslo 2011,05en_US
dc.subject.jelC61en_US
dc.subject.jelD20en_US
dc.subject.ddc330en_US
dc.subject.keywordWeight restrictionsen_US
dc.subject.keywordDEAen_US
dc.subject.keywordefficiencyen_US
dc.subject.keywordfrontier production functionen_US
dc.subject.keywordprimal and dual linear programming problemsen_US
dc.titleWeight restrictions in DEA: Misplaced emphasis?en_US
dc.typeWorking Paperen_US
dc.identifier.ppn646784846en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Memorandum, Department of Economics, University of Oslo

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