ISSN: (Online) 2321 -4155
ISSN: (Print) 2320 -7000

JOURNAL OF INDIAN RESEARCH
VOLUME : 3, ISSUE : 3, July-September, 2015 (ISSN No. : 2321-4155)
 
MEASURING TECHNICAL, SCALE, COST AND ALLOCATIVE EFFICIENCY IN THE MANUFACTURE OF BASIC METALS IN INDIA USING DATA ENVELOPMENT ANALYSIS
Dr. M. Manonmani
 
ABSTRACT
There are two approaches for estimation of efficiency, viz., the Stochastic Frontier Approach (SFA) and Data Envelopment Approach (DEA). While the SFA (econometric approach) estimates the efficiency of the firms by estimating the production function, the DEA technique involves the use of mathematical programming to estimate the efficiency of the firms / industry. For the period 2002-3 to 2011-12, the calculations on the efficiency of Decision Making Units (DMUs) in the manufacture of basic metals in India have been done. The paper demonstrates that the technical, scale, cost and allocative efficient DMUs were more under Variable Returns to Scale (VRS) production technology in comparison with Constant Returns to Scale (CRS) production technology.
 
KEYWORD
Allocative efficiency, BCC MODEL , CCR Model , cost efficiency, Decision Making Units(DMU), scale efficiency, Variable Returns to Scale (VRS).
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