On Price Efficiency
扩展影子成本函数方法,通过分段线性参考技术识别企业特定影子价格,并推导出类似Farrell的配置效率、技术效率和总体效率度量。
In many instances, a firm's observed production choices will not be consistent with profit maximization or cost minimization at market prices. Such firms are generally assumed to minimize cost with respect to shadow prices. The authors extend this shadow cost function approach to allow for the identification of firm-specific shadow prices. Using a piecewise linear representation of the reference technology, they specify a linear program and interpret its solution as a set of shadow prices. The authors derive Farrell-like measures of dual allocative, technical, and overall efficiency. They close with an example illustrating the use of this technique. Copyright 1990 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.