Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

The Measurement of Productive Efficiency

The Measurement of Productive Efficiency Vol. 120.] [Part III Journal of the Royal Statistical Society SERIES A (GENERAL) PART 111,1957. By M. J. FARRELL [Read before the ROYAL STATISTICAL SOCIETY, March 20th, 1957, the PREsIDENT, Professor E. S. PEARSON, C.B.E., in the Chair] 1. INTRODUCTION THE problem of measuring the productive efficiency of an industry is important to both the economic theorist and the economic policy maker. If the theoretical arguments as to the relative efficiency of different economic systems are to be subjected to empirical testing, it is essential to be able to make some actual measurements of efficiency. Equally, if economic planning is to concern itself with particular industries, it is important to know how far a given industry can be expected to increase its output by simply increasing its efficiency, without absorbing further resources. A number of attempts have been made to solve this problem, but, although they usually produced careful measurements of some or all ofthe inputs and outputs of the industry, they failed to combine these measurements into any satisfactory measure of efficiency. This failure was partly due to a pure neglect of the theoretical side of the problem. Indeed, for a long time it was considered adequate to http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of the Royal Statistical Society Series A (Statistics in Society) Oxford University Press

Loading next page...
 
/lp/oxford-university-press/the-measurement-of-productive-efficiency-ATZGFTG8Pq

References (7)

Copyright
© 1957 The Authors
ISSN
0964-1998
eISSN
1467-985X
DOI
10.2307/2343100
Publisher site
See Article on Publisher Site

Abstract

Vol. 120.] [Part III Journal of the Royal Statistical Society SERIES A (GENERAL) PART 111,1957. By M. J. FARRELL [Read before the ROYAL STATISTICAL SOCIETY, March 20th, 1957, the PREsIDENT, Professor E. S. PEARSON, C.B.E., in the Chair] 1. INTRODUCTION THE problem of measuring the productive efficiency of an industry is important to both the economic theorist and the economic policy maker. If the theoretical arguments as to the relative efficiency of different economic systems are to be subjected to empirical testing, it is essential to be able to make some actual measurements of efficiency. Equally, if economic planning is to concern itself with particular industries, it is important to know how far a given industry can be expected to increase its output by simply increasing its efficiency, without absorbing further resources. A number of attempts have been made to solve this problem, but, although they usually produced careful measurements of some or all ofthe inputs and outputs of the industry, they failed to combine these measurements into any satisfactory measure of efficiency. This failure was partly due to a pure neglect of the theoretical side of the problem. Indeed, for a long time it was considered adequate to

Journal

Journal of the Royal Statistical Society Series A (Statistics in Society)Oxford University Press

Published: Dec 5, 2018

There are no references for this article.