Inefficiency Measurement

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2014
Volume: 6
Issue: 2
Pages: 79-92

Authors (2)

Christopher P. Chambers (not in RePEc) Alan D. Miller (University of Western Ontario,...)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We introduce an ordinal model of efficiency measurement. Our primitive is a notion of efficiency that is comparative, but not cardinal or absolute. In this framework, we postulate axioms that an ordinal efficiency measure should satisfy. Primary among these are choice consistency and planning consistency, which guide the measurement of efficiency in a firm with access to multiple technologies. Other axioms include scale invariance, strong monotonicity, and a continuity condition. These axioms characterize a family of path-based measures. By replacing the continuity condition with symmetry, we obtain the coefficient of resource utilization.

Technical Details

RePEc Handle
repec:aea:aejmic:v:6:y:2014:i:2:p:79-92
Journal Field
General
Author Count
2
Added to Database
2026-01-25