1 The Measurement of Business Capital, Income and Performance Tutorial presented at the University Autonoma of Barcelona, Spain, September 21-22, 2005; revised December, 2005. W. Erwin Diewert, September 21-22, 2005. Department of Economics, University of British Columbia, Vancouver, B.C., Canada, V6N 1Z1 Email: diewert@econ.ubc.ca IX. Benchmarking and the Nonparametric Approach to Performance Measurement 1. Introduction 2. An Introduction to the Nonparametric Measurement of Efficiency 3. Efficiency Tests Using Only Quantity Data 4. Efficiency Tests Using Price and Quantity Data 5. Relationships between the Efficiency Measures 6. An Empirical Comparison of Alternative Efficiency Measures for Canada 1. Introduction Data Envelopment Analysis or (DEA) is the term used by Charnes and Cooper (1985) and their co-workers to denote an area of analysis which is called the nonparameteric 1 2 approach to production theory or the measurement of the efficiency of production by economists. In section 2, we will provide an introduction to the theory of benchmarking and the measurement of relative efficiency of production units. Section 3 develops measures of relative efficiency that use only quantity data. These measures are particularly useful in the context of measuring the efficiency of government owned enterprises or units of the general government sector that deliver services to ...
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