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The transformation function, technical efficiency, and the CCR ratio.

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Title: The transformation function, technical efficiency, and the CCR ratio.
Authors: Ray, Subhash C1 (AUTHOR) subhash.ray@uconn.edu
Source: European Journal of Operational Research. Oct2019, Vol. 278 Issue 2, p422-429. 8p.
Subjects: MIMO radar, Industrial productivity, Returns to scale, Aggregation operators, MIMO systems, Economies of scale, Data envelopment analysis
Geographic Terms: Rhodes (Greece : Island)
Abstract: • The Charnes, Cooper, rhodes ratio is a productivity measure. • The Charnes, Cooper, rhodes measure is ratio of ratios. • It also measures the distance from the tangent hyperplane. • Intercept in the dual measure relates to the 'Degree of increasing Returns'. Charnes, Cooper, and Rhodes define the ratio of the virtual output to the virtual input as a measure of the technical efficiency of a multiple output multiple input firm. The aggregation weights used in construction the virtual output and the virtual input may be arbitrarily chosen so long as the weights are non-negative and using these weights no firm's input-output bundle shows efficiency exceeding 100%. In production economics, the ratio of aggregate output to aggregate input is a measure of total factor productivity and a direct link of the Charnes, Cooper, and Rhodes ratio to technical efficiency is not obvious. Usually the ratio measure is rationalized as efficiency by showing its equivalence to the Farrell efficiency measure. This paper offers a direct derivation of the ratio measure of efficiency from a transformation function. We also show how Banker, Charnes, and Cooper measure under variable returns to scale can be derived from the transformation function. [ABSTRACT FROM AUTHOR]
Copyright of European Journal of Operational Research is the property of Elsevier B.V. and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Database: Engineering Source
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DbLabel: Engineering Source
An: 136616886
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PubTypeId: academicJournal
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  Data: The transformation function, technical efficiency, and the CCR ratio.
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  Data: <searchLink fieldCode="AR" term="%22Ray%2C+Subhash+C%22">Ray, Subhash C</searchLink><relatesTo>1</relatesTo> (AUTHOR)<i> subhash.ray@uconn.edu</i>
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  Data: <searchLink fieldCode="JN" term="%22European+Journal+of+Operational+Research%22">European Journal of Operational Research</searchLink>. Oct2019, Vol. 278 Issue 2, p422-429. 8p.
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  Data: <searchLink fieldCode="DE" term="%22MIMO+radar%22">MIMO radar</searchLink><br /><searchLink fieldCode="DE" term="%22Industrial+productivity%22">Industrial productivity</searchLink><br /><searchLink fieldCode="DE" term="%22Returns+to+scale%22">Returns to scale</searchLink><br /><searchLink fieldCode="DE" term="%22Aggregation+operators%22">Aggregation operators</searchLink><br /><searchLink fieldCode="DE" term="%22MIMO+systems%22">MIMO systems</searchLink><br /><searchLink fieldCode="DE" term="%22Economies+of+scale%22">Economies of scale</searchLink><br /><searchLink fieldCode="DE" term="%22Data+envelopment+analysis%22">Data envelopment analysis</searchLink>
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  Data: <searchLink fieldCode="DE" term="%22Rhodes+%28Greece+%3A+Island%29%22">Rhodes (Greece : Island)</searchLink>
– Name: Abstract
  Label: Abstract
  Group: Ab
  Data: • The Charnes, Cooper, rhodes ratio is a productivity measure. • The Charnes, Cooper, rhodes measure is ratio of ratios. • It also measures the distance from the tangent hyperplane. • Intercept in the dual measure relates to the 'Degree of increasing Returns'. Charnes, Cooper, and Rhodes define the ratio of the virtual output to the virtual input as a measure of the technical efficiency of a multiple output multiple input firm. The aggregation weights used in construction the virtual output and the virtual input may be arbitrarily chosen so long as the weights are non-negative and using these weights no firm's input-output bundle shows efficiency exceeding 100%. In production economics, the ratio of aggregate output to aggregate input is a measure of total factor productivity and a direct link of the Charnes, Cooper, and Rhodes ratio to technical efficiency is not obvious. Usually the ratio measure is rationalized as efficiency by showing its equivalence to the Farrell efficiency measure. This paper offers a direct derivation of the ratio measure of efficiency from a transformation function. We also show how Banker, Charnes, and Cooper measure under variable returns to scale can be derived from the transformation function. [ABSTRACT FROM AUTHOR]
– Name: AbstractSuppliedCopyright
  Label:
  Group: Ab
  Data: <i>Copyright of European Journal of Operational Research is the property of Elsevier B.V. and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
PLink https://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=egs&AN=136616886
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      – Type: doi
        Value: 10.1016/j.ejor.2019.02.014
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      – Code: eng
        Text: English
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      Pagination:
        PageCount: 8
        StartPage: 422
    Subjects:
      – SubjectFull: MIMO radar
        Type: general
      – SubjectFull: Industrial productivity
        Type: general
      – SubjectFull: Returns to scale
        Type: general
      – SubjectFull: Aggregation operators
        Type: general
      – SubjectFull: MIMO systems
        Type: general
      – SubjectFull: Economies of scale
        Type: general
      – SubjectFull: Data envelopment analysis
        Type: general
      – SubjectFull: Rhodes (Greece : Island)
        Type: general
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      – TitleFull: The transformation function, technical efficiency, and the CCR ratio.
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              Text: Oct2019
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              Y: 2019
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