Technological change and efficiency in the presence of quasi-fixed inputs: A DEA application to the hospital sector

Technological change and efficiency in the presence of quasi-fixed inputs: A DEA application to... Quasi-fixed inputs are present in virtually all sectors of the economy and cannot be adjusted to their optimal value even in the long-run. This constraint must be incorporated in models to correctly measure efficiency and technological change. Assuming that all inputs can be freely and instantly set to their optimal level overestimates firms/sectors/countries’ capacity to adjust, biases results, and weakens DEA method as a working tools for managers. We propose a modified DEA approach introducing quasi-fixed inputs and apply the method to hospital emergency services in Montreal to show that such limitations can be lifted. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png European Journal of Operational Research Elsevier

Technological change and efficiency in the presence of quasi-fixed inputs: A DEA application to the hospital sector

European Journal of Operational Research, Volume 154 (3) – May 1, 2004

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Publisher
Elsevier
Copyright
Copyright © 2002 Elsevier B.V.
ISSN
0377-2217
eISSN
1872-6860
D.O.I.
10.1016/S0377-2217(02)00712-9
Publisher site
See Article on Publisher Site

Abstract

Quasi-fixed inputs are present in virtually all sectors of the economy and cannot be adjusted to their optimal value even in the long-run. This constraint must be incorporated in models to correctly measure efficiency and technological change. Assuming that all inputs can be freely and instantly set to their optimal level overestimates firms/sectors/countries’ capacity to adjust, biases results, and weakens DEA method as a working tools for managers. We propose a modified DEA approach introducing quasi-fixed inputs and apply the method to hospital emergency services in Montreal to show that such limitations can be lifted.

Journal

European Journal of Operational ResearchElsevier

Published: May 1, 2004

References

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