Invariant Multiplicative Efficiency and Piecewise Cobb-Douglas Envelopments.
TEXAS UNIV AT AUSTIN CENTER FOR CYBERNETIC STUDIES
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A new multiplicative efficiency formulation is developed wherein the efficiency values are invariant under changes in the units of measurement of outputs and inputs. It is shown that the associated Data Envelopment Analysis DEA implies that optimal envelopments are of piecewise Cobb-Douglas type. This leads to a new method for estimating frontier production functions of Cobb-Douglas type.
- Operations Research