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

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