Template-Type: ReDIF-Paper 1.0
Author-Name:  Mojtaba Ghiyasi 
Author-Name-First: Mojtaba
Author-Name-Last: Ghiyasi 
Author-Workplace-Name: Centre of Health Economics Research, University of Southern Denmark 
Author-Name: Jens Leth Hougaard
Author-Name-First: Jens Leth
Author-Name-Last: Hougaard
Author-Email: jlh@ifro.ku.dk
Author-Workplace-Name: Department of Food and Resource Economics, University of Copenhagen
Title: Ranking Production Units According to Marginal Efficiency Contribution 
Abstract: League tables associated with various forms of service activities from schools to hospitals illustrate the public need for ranking institutions by their productive performance. We present a new method for ranking production units which is based on each units marginal contribution to the technical efficiency of various “mergers” relative to a common reference technology. The approach is radically different from the usual one based on super-efficiency indexes in DEA. We illustrate the mechanics of our method by a series of numerical examples and further demonstrate that our new index inherits all relevant and desirable properties of the Farrell efficiency index upon which it is constructed.
Length: 21 pages
Creation-Date: 2014-08
File-URL: http://okonomi.foi.dk/workingpapers/MSAPpdf/MSAP2014/MSAP_WP04_2014.pdf
File-Format: Application/pdf
Number: 04_2014
Keywords: Production units, Ranking, Marginal efficiency contribution, DEA, Super efficiency, Contribution index
Handle: RePEc:foi:msapwp:04_2014