Production under a quota system: an extension of the weighted additive model to assess technical efficiency

Juan Aparicio , Magdalena Kapelko , Lidia Ortiz , Jesus T. Pastor

Abstract

Since it was introduced, data envelopment analysis (DEA) has been applied to many different areas and has also been extended to numerous production contexts. In this paper, we focus our attention on the production framework under output quotas. Many types of markets throughout the world are subject to intervention by government policies, with the purpose of raising the prices that producers receive for their products through the imposition of production quotas. In this paper, we introduce a comprehensive approach based upon the extension of the weighted additive model in DEA with the aim of measuring technical inefficiency of firms producing under a quota system. Accordingly, we prove several interesting properties of the new approach and compare it with the conventional weighted additive model. The paper concludes by considering a case study that analyses milk production inefficiency in Canadian provinces, incorporating information on the quota assigned to each of the provinces
Author Juan Aparicio - [Universidad Miguel Hernandez de Elche]
Juan Aparicio,,
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, Magdalena Kapelko (MISaF / IZM / KL)
Magdalena Kapelko,,
- Katedra Logistyki
, Lidia Ortiz - [Universidad Miguel Hernandez de Elche]
Lidia Ortiz,,
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, Jesus T. Pastor - [Universidad Miguel Hernandez de Elche]
Jesus T. Pastor,,
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Journal seriesINFOR: Information Systems and Operational Research, ISSN 0315-5986, e-ISSN 1916-0615, (A 15 pkt)
Issue year2017
Vol55
No3
Pages227-242
Publication size in sheets0.75
Keywords in Englishdata envelopment analysis, the weighted additive model, production under quotas
ASJC Classification1706 Computer Science Applications; 1710 Information Systems; 1711 Signal Processing
DOIDOI:10.1080/03155986.2016.1272961
URL http://dx.doi.org/10.1080/03155986.2016.1272961
Languageen angielski
Score (nominal)15
Publication indicators Scopus Citations = 0; WoS Citations = 0; Scopus SNIP (Source Normalised Impact per Paper): 2016 = 0.169; WoS Impact Factor: 2017 = 0.257 (2) - 2017=0.406 (5)
Citation count*1 (2019-12-06)
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* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perish system.
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