Measuring and decomposing profit inefficiency through the Slacks-Based Measure

The Slacks-Based Measure was introduced by Tone (2001) in order to estimate technical efficiency in the input-output space by taking into account all sources of technical inefficiency and satisfying, at the same time, many interesting properties. Since then, the Slacks-Based Measure has attracted th...

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Detalles Bibliográficos
Autores: Aparicio, Juan, Ortiz, Lidia, Pastor Ciurana, Jesús Tadeo
Tipo de recurso: artículo
Fecha de publicación:2016
País:España
Institución:Universidad Miguel Hernández de Elche
Repositorio:REDIUMH. Depósito Digital de la UMH
OAI Identifier:oai:dspace.umh.es:11000/4939
Acceso en línea:http://hdl.handle.net/11000/4939
Access Level:acceso abierto
Palabra clave:DATA Envelopment Analysis
Profit inefficiency
Slacks-Based Measure
517 - Análisis
Descripción
Sumario:The Slacks-Based Measure was introduced by Tone (2001) in order to estimate technical efficiency in the input-output space by taking into account all sources of technical inefficiency and satisfying, at the same time, many interesting properties. Since then, the Slacks-Based Measure has attracted the interest of numerous researchers and practitioners. The Slacks-Based Measure has been applied to technical efficiency determination, productivity change measurement, the analysis of production process performance consisting of networks, and so on. However, so far, the Slacks-Based Measure has not been directly related to profit inefficiency as a component of the overall economic performance of firms. In this note, we show how a specific normalized measure of profit inefficiency may be decomposed through the Slacks-Based Measure.