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Cost Efficiency and Demand Fluctuation under Data Envelopment Analysis

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Abstract

Efficiency models of data envelopment analysis are extended here to include the transition from micro to macro levels, where the latter provides an overall measure of market efficiency. The dynamics of the entry and exit behavior, the impact of demand uncertainty on capacity utilization and the specification of the dynamic cost frontier are analyzed in some detail and empirically illustrated in terms of the US computer industry data over the last decade.

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Sengupta, J.K. Cost Efficiency and Demand Fluctuation under Data Envelopment Analysis. OPSEARCH 39, 161–176 (2002). https://doi.org/10.1007/BF03398678

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