A proposal to integrate Data Envelopment Analysis and Le Chatelier principle
Filippo Elba
TL;DR
This paper proposes a novel integration of Data Envelopment Analysis with the Le Chatelier principle to estimate efficient production frontiers, addressing limitations of previous methods in industry analysis.
Contribution
It introduces a new framework combining DEA and Le Chatelier principle to improve efficiency estimation in industry production analysis.
Findings
Effective estimation of short and long run production frontiers
Overcomes limitations of previous efficiency analysis methods
Provides a theoretical and practical integration of DEA and Le Chatelier principle
Abstract
The article aims to estimate the short and long run efficient production frontiers for firm operating in an industry. The Le Chatelier principle represents the theoretical framework, while the tool used to find the frontiers is the non-parametric Data Envelopment Analysis technique. The proposal tries to overcome the main limitations that other efforts done in this context seem to have.
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Taxonomy
TopicsEfficiency Analysis Using DEA · Economic Growth and Productivity · Global Trade and Competitiveness