Technological change and efficiency in the presence of quasi-fixed inputs: A dea application to the hospital sector
2004
European Journal of Operational Research
3
154
755-763
Journal_Article
Economics_Performance_measurement
Strategic||Policy
No
No
Article Link
Ouellette, P., & Vierstraete, V. (2004). Technological change and efficiency in the presence of quasi-fixed inputs: A DEA application to the hospital sector. [Journal Article]. European Journal of Operational Research, 154(3), 755-763. doi: 10.1016/s0377-2217(02)00712-9
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