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A new criterion for technical efficiency measures: non‐monotonicity across dimensions axioms
Author(s) -
Kerstens Kristiaan,
Vanden Eeckaut Philippe
Publication year - 1999
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/(sici)1099-1468(199902)20:1<45::aid-mde912>3.0.co;2-b
Subject(s) - axiom , benchmark (surveying) , monotonic function , curse of dimensionality , parametric statistics , mathematical economics , empirical research , computer science , mathematical optimization , series (stratigraphy) , mathematics , artificial intelligence , statistics , geometry , mathematical analysis , paleontology , geodesy , biology , geography
Based on non‐parametric deterministic production technologies radial and non‐radial measures of technical efficiency are evaluated using properties guaranteeing insensitivity to the dimensionality of technology. These new axioms are important in empirical research and may especially prevent manipulation of results when implementing these benchmark methodologies in private or public organizations. An empirical example illustrates to which extent a series of radial and non‐radial technical efficiency measures satisfies the proposed axioms. Copyright © 1999 John Wiley & Sons, Ltd.