A homothetic reference technology in data envelopment analysis

作者：Olesen Ole B^*

来源：European Journal of Operational Research, 2014, 233(3): 759-771.

DOI：10.1016/j.ejor.2013.09.024

• Data enveopment analysis
• DEA based estimation of a homothetic
• production function
• Convex hull
• Homothetic hull
• lsoquant estimation
• Intersection and sum form

The assumption of a homothetic production function is often maintained in production economics. In this paper we explore the possibility of maintaining homotheticity within a nonparametric DEA framework. The main contribution of this paper is to use the approach suggested by Hanoch and Rothschild (1972) to define a homothetic reference technology. We focus on the largest subset of data points that is consistent with such a homothetic production function. We use the HR-approach to define a piecewise linear homothetic convex reference technology. We propose this reference technology with the purpose of adding structure to the flexible non-parametric BCC DEA estimator. Motivation for why such additional structure sometimes is warranted is provided. An estimation procedure derived from the BCC-model and from a maintained assumption of homotheticity is proposed. The performance of the estimator is analyzed using simulation.

• 出版日期2014-3-16