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What is Debreu-Farrell Input Efficiency

Chapter 13
Handbook of Research on Strategic Performance Management and Measurement Using Data Envelopment Analysis
This measure defines inefficiency as the maximum equi-proportionate reduction of inputs that is attainable without reducing any of the outputs (Kuosmanen and Post, 2001 AU90: The in-text citation "Kuosmanen and Post, 2001" is not in the reference list. Please correct the citation, add the reference to the list, or delete the citation. ).
Published in Chapter:
Non-Parametric Estimation of Environmental Efficiency Using Data Envelopment Analysis and Free Disposable Hull
Richard Mulwa (University of Nairobi, Kenya)
Copyright: © 2014 |Pages: 30
DOI: 10.4018/978-1-4666-4474-8.ch013
Abstract
Nitrogen, phosphate, and herbicide use are three main environmental problems caused by agriculture. Modelling these undesirable outputs and other detrimental side effects of production activities has attracted considerable attention and debate among production economists. A common approach is to treat detrimental variables as inputs mainly using Data Envelopment Analysis (DEA), which has enjoyed a lot of success over the years. On the other hand, Free Disposable Hull (FDH) has not enjoyed as much success as its counterpart, DEA. This chapter demonstrates how environmental efficiency can be modelled using both DEA and FDH under strong and weak disposability assumptions. Results show that weak disposability assumption is more superior in achieving relatively high emission reductions and that FDH tends to allocate efficiency to more DMUs compared to DEA.
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