Allocative efficiency

In order to enter the price per unit of an input or output you will first have to click the box next to 'Enable Cost Efficiency' allowing you to make changes to the page.

This will then allow you to choose for each period in your data set the prices to be entered. Two types of efficiency can be computed through PIM DEAsoft-V3: Cost Efficiency and Revenue Efficiency. (There is provision for computing Profit Efficiency in a future modification.)

Cost Efficiency – The software yields the cost efficiency in terms of the minimum cost of securing the outputs of each DMU given its input prices. The DMU’s input allocative efficiency is also given. E.g. see Thanassoulis (2001, section 4.7).

Revenue Efficiency - The software yields the revenue efficiency in terms of the maximum revenue that could be secured for the inputs of each DMU given its output prices. The DMU’s output allocative efficiency is also given. E.g. see Thanassoulis (2001, section 4.7).

To ensure changes are saved. click on