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Applied Economics Letters Volume 8, 2001 - Issue 5
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Original Articles

Input aggregation and computed technical efficiency

Loren W. Tauer
Pages 295-297 | Published online: 06 Oct 2010
 
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Abstract

Using data simulated from a random production function it is shown that technical efficiency estimates computed by Data Envelopment Analysis are biased even if the exact aggregator function is used to aggregate inputs.

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