Abstract
In this paper we contrast the DEA and activity analysis approaches by Charnes, Cooper and Rhodes (1978) and Shephard (1970), respectively. We show that by appropriately normalizing Shephard's output price model the two approaches coincide.
Similar content being viewed by others
References
Banker, R. D. (1993). “Maximum Likelihood, Consistency and DEA: A Statistical Foundation.” Management Science 29, 1256-1273.
Boles, J. N. (1966). “Efficiency Squared-Efficient Computation of Efficiency Indexes,” in Proceedings of the Thirty Ninth Annual Meeting of the Western Farm Economics Association, pp. 137-142.
Bressler, R. G. (1966). “The Measurement of Productive Efficiency,” in Proceedings of the Thirty Ninth Annual Meeting of the Western Farm Economics Association, pp. 129-136.
Charnes, A., W. W. Cooper, A. Lewin and L. Seiford, eds. (1994). Data Envelopment Analysis: Theory, Methodology and Applications. Boston: Kluwer Academic Publishers.
Charnes, A., W. W. Cooper and E. Rhodes. (1978). “Measuring the Efficiency of Decision Making Units.” European Journal of Operational Research 2(6), 429-444.
Farrell, M. J. (1957). “The Measurement of Productive Efficiency.” Journal of the Royal Statistical Society Series A 120, 253-281.
Førsund, F. (1999). “The Origins of DEA: The Economic Perspective,” mimeo.
Grosskopf, S. (1986). “The Role of the Reference Technology in Measuring the Efficiency of Production.” Economic Journal 96, 499-513.
Kemeny, J. G., O. Morgenstern and G. L. Thompson. (1956). “A Generalization of the von Neumann Model of an Expanding Economy.” Econometrica 24, 115-135.
von Neumann, J. (1937). “Ñber ein ökonomisches Gleichungssystem und eine Verallgemeinerung des Brouwersches Fixpunktsatzes.” Ergebnisse eines Mathematischen Kolloquiums 8, 73-83.
Shephard, R. W. (1970). Theory of Cost and Production Functions. Princeton: Princeton University Press.
Shephard, R. W. (1953). Cost and Production Functions. Princeton: Princeton University Press.
Seitz, W. D. (1966). “Efficiency Measures for Steam-Electric Generating Plants,” in Proceedings of the Thirty Ninth Annual Meeting of the Western Farm Economics Association, pp. 143-151.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Färe, R., Grosskopf, S. Two Perspectives on DEA: Unveiling the Link between CCR and Shephard. Journal of Productivity Analysis 17, 41–47 (2002). https://doi.org/10.1023/A:1013528102920
Issue Date:
DOI: https://doi.org/10.1023/A:1013528102920