Measuring productive efficiency using Nerlovian profit efficiency indicator and metafrontier analysis

Richard Mulwa, Ali Emrouznejad

Research output: Contribution to journalArticle

Abstract

The aim of this paper is to illustrate the measurement of productive efficiency using Nerlovian indicator and metafrontier with data envelopment analysis techniques. Further, we illustrate how profit efficiency of firms operating in different regions can be aggregated into one overarching frontier. Sugarcane production in three regions in Kenya has been used to illustrate these concepts. Results show that the sources of inefficiency in all regions are both technical and allocative, but allocative efficiency contributes more to the overall Nerlovian (in)efficiency indicator.
Original languageEnglish
Pages (from-to)271-287
Number of pages17
JournalOperational Research
Volume13
Issue number2
DOIs
Publication statusPublished - Jul 2013

Fingerprint

Profit
Profitability
Allocative Efficiency
Data Envelopment Analysis
Data envelopment analysis
Profit efficiency
Productive efficiency
Metafrontier
Business
Concepts
Allocative efficiency
Kenya
Inefficiency

Cite this

@article{a533f1f6b7b449c29d8fc4c490140012,
title = "Measuring productive efficiency using Nerlovian profit efficiency indicator and metafrontier analysis",
abstract = "The aim of this paper is to illustrate the measurement of productive efficiency using Nerlovian indicator and metafrontier with data envelopment analysis techniques. Further, we illustrate how profit efficiency of firms operating in different regions can be aggregated into one overarching frontier. Sugarcane production in three regions in Kenya has been used to illustrate these concepts. Results show that the sources of inefficiency in all regions are both technical and allocative, but allocative efficiency contributes more to the overall Nerlovian (in)efficiency indicator.",
author = "Richard Mulwa and Ali Emrouznejad",
year = "2013",
month = "7",
doi = "10.1007/s12351-011-0119-1",
language = "English",
volume = "13",
pages = "271--287",
journal = "Operational Research",
issn = "1109-2858",
publisher = "Springer",
number = "2",

}

Measuring productive efficiency using Nerlovian profit efficiency indicator and metafrontier analysis. / Mulwa, Richard; Emrouznejad, Ali.

In: Operational Research, Vol. 13, No. 2, 07.2013, p. 271-287.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Measuring productive efficiency using Nerlovian profit efficiency indicator and metafrontier analysis

AU - Mulwa, Richard

AU - Emrouznejad, Ali

PY - 2013/7

Y1 - 2013/7

N2 - The aim of this paper is to illustrate the measurement of productive efficiency using Nerlovian indicator and metafrontier with data envelopment analysis techniques. Further, we illustrate how profit efficiency of firms operating in different regions can be aggregated into one overarching frontier. Sugarcane production in three regions in Kenya has been used to illustrate these concepts. Results show that the sources of inefficiency in all regions are both technical and allocative, but allocative efficiency contributes more to the overall Nerlovian (in)efficiency indicator.

AB - The aim of this paper is to illustrate the measurement of productive efficiency using Nerlovian indicator and metafrontier with data envelopment analysis techniques. Further, we illustrate how profit efficiency of firms operating in different regions can be aggregated into one overarching frontier. Sugarcane production in three regions in Kenya has been used to illustrate these concepts. Results show that the sources of inefficiency in all regions are both technical and allocative, but allocative efficiency contributes more to the overall Nerlovian (in)efficiency indicator.

UR - http://www.scopus.com/inward/record.url?scp=84878975387&partnerID=8YFLogxK

UR - http://link.springer.com/article/10.1007%2Fs12351-011-0119-1

U2 - 10.1007/s12351-011-0119-1

DO - 10.1007/s12351-011-0119-1

M3 - Article

AN - SCOPUS:84878975387

VL - 13

SP - 271

EP - 287

JO - Operational Research

JF - Operational Research

SN - 1109-2858

IS - 2

ER -