Production Possibility Set and Efficiency

Efficiency in Production Possibility Set and General Model
  • Tarja Joro
  • Pekka J. Korhonen
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 218)


Many concepts used in DEA are adopted from production economics. One of those concepts is production function f: ℜ m  → ℜ(y = f(x)), where vector x represents inputs and y is one-dimensional output. In this case, it is assumed that a DM can control inputs x. There are possibly other inputs, which are non-controllable. They are taken into account in the structure of function f. Moreover, the term cost function is used to refer to the case, in which there are many outputs and one input, and the DM is assumed to control the outputs, i.e., c: ℜ s  → ℜ (x = c(y)).


Efficiency Score Efficient Frontier Production Frontier Projection Direction Production Possibility 
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Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  • Tarja Joro
    • 1
  • Pekka J. Korhonen
    • 2
  1. 1.Department of Accounting, Operations and Information Systems Alberta School of BusinessUniversity of AlbertaEdmontonCanada
  2. 2.Department of Information and Service Economy School of BusinessAalto UniversityHelsinkiFinland

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