Measuring the productive efficiency of a group of firms

Sung Ko LI*, Ying Chu NG

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

54 Citations (Scopus)


While the conventional Farrell-Färe approach to efficiency measurement can identify the most inefficient firms, it fails to consider the efficiency of a group of firms thoroughly. This paper introduces efficiency measures that can be used to find the efficiency of a group of firms and pinpoint whether the group inefficiency is due to inefficiency inside or outside individual firms. Furthermore, a new way of finding the revenue maximum shadow price vector is introduced to compute the allocative efficiency of individual firms when price data are not available.

Original languageEnglish
Pages (from-to)377-390
Number of pages14
JournalInternational Advances in Economic Research
Issue number4
Publication statusPublished - Nov 1995

Scopus Subject Areas

  • Economics and Econometrics
  • Economics, Econometrics and Finance(all)


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