Symmetric decompositions of cost variation
European Journal of Operational Research , Volume 285 p. 1189- 1198
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.
|Cost variation, Decomposition, Efficiency change, Productivity and competitiveness, Technological change|
|European Journal of Operational Research|
|Organisation||Rotterdam School of Management (RSM), Erasmus University|
Balk, B.M, & Zofio Prieto, J.L. (2020). Symmetric decompositions of cost variation. European Journal of Operational Research, 285, 1189–1198. doi:10.1016/j.ejor.2020.02.034