Hyperbolic efficiency and return to the dollar
European Journal of Operational Research
Färe, R., Grosskopf, S., & Zaim, O. (2002). Hyperbolic efficiency and return to the dollar. European Journal of Operational Research, 136(3), 671-679.
Please cite this item using this persistent URLhttp://hdl.handle.net/11693/13491
This paper, after establishing the relations between hyperbolic graph measure of technical efficiency and the radial measures of technical efficiency, shows that the dual, cost and revenue interpretation of the hyperbolic efficiency measure is related to Georgescu-Roegen's notion of "return to the dollar" [N. Georgescu-Roegen, in: Koopmans, T. (Ed.), Activity Analysis of Production and Allocation, Wiley, New York, 1951, pp. 98-115]. Once this relation is established, it leads to a derivation of an allocative efficiency index, which measures the price distortions using data on observed costs and revenues without requiring information on prices. (C) 2002 Elsevier Science B.V. All rights reserved.
- Department of Economics