In this paper a number of symmetric, empirically implementable decompositions of the cost variation (in difference and ratio form) of a production unit are developed. The components distinguished are price level change, technical efficiency change, allocative efficiency change, technological change, scale of activity change, and price structure change. Given data from a (balanced) panel of production units, all the necessary ingredients for the computation of the various decompositions can be obtained by using linear programming techniques (DEA). An application is provided.

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doi.org/10.1016/j.ejor.2020.02.034, hdl.handle.net/1765/125629
European Journal of Operational Research
Rotterdam School of Management (RSM), Erasmus University

Balk, B., & Zofio Prieto, J. (2020). Symmetric decompositions of cost variation. European Journal of Operational Research, 285, 1189–1198. doi:10.1016/j.ejor.2020.02.034