Symmetric Decompositions of Cost Variation
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.
|Keywords||Productivity and competitiveness, Cost variation, Decomposition, Efficiency change, Technological change|
|Journal||European Journal of Operational Research|
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