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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hdl.handle.net/1765/128114
European Journal of Operational Research
Department of Technology and Operations Management

Balk, B.M, & Zofío, J. L. (2020). Symmetric Decompositions of Cost Variation. European Journal of Operational Research, 285, 1189–1198. Retrieved from http://hdl.handle.net/1765/128114