Abstract
Continuity is a desirable property of an efficiency measure. It ensures that small data errors cause only small errors in the efficiency measure. In this paper continuity properties of the BCC efficiency measure are studied. Examples are given where this measure “jumps” under arbitrary small data perturbations. However, it is shown that under weak assumptions it depends continuously on the input output data. Implications to the stability of efficiency classifications are discussed, and the results are illustrated by an empirical example.
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© 1999 Springer Fachmedien Wiesbaden
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Scheel, H. (1999). Continuity of the BCC Efficiency Measure. In: Westermann, G. (eds) Data Envelopment Analysis in the Service Sector. Harzer wirtschaftswissenschaftliche Schriften. Deutscher Universitätsverlag, Wiesbaden. https://doi.org/10.1007/978-3-663-08343-6_4
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DOI: https://doi.org/10.1007/978-3-663-08343-6_4
Publisher Name: Deutscher Universitätsverlag, Wiesbaden
Print ISBN: 978-3-8244-7012-9
Online ISBN: 978-3-663-08343-6
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