Hi,
I carried out DEA-output oriented models of both CCR and BCC for asian container ports and attained the following average results.
Average Pure Technical Efficiency = 0.717
Average Scale Efficiency = 0.7403
Pure technical inefficiency is due to managerial skills and scale inefficiency is due to scale diseconomies. According to the results, the sources of inefficiency can be said to be stemmed from both on fair equal levels? Pls correct me if my interpretation is wrong.
Could you guys please suggest any papers on interpretation of DEA output oriented models too? Many thanks.
You give too little detail of your model, data number of DMUs , stakeholders etc. for anyone to comment on what the appropriate interpretation of average efficiencies actually is!
From what you have given the "average" port can increase its all its Outputs by over 39% while keeping its resource use constant. (ie. 1/0.717). Note this does not mean that the industry as a whole has a pure technical efficency of 71.7% as you no doubt you have used a simple arithmetic mean averaging small ports with big ones. So you can not say that the total output of the all the ports could be increased by 39%. The scale effeciency is just the ratio of your CCR and BCC efficiencies for each unit. Here your "average" will be of all sorts of units. so will include some tecnhical inefficiencies that becuase there is no appropriate efficient peer for some ports (for example the smallest unit for each input variable (if it is unique will always be efficent in the BCC model). So you can again only say something about the "average" port could make further increases in output if it was allowed to adjust its scale size.
Gary Paul Martin Simpson thank you so much for your explanation.
Here are more details behind my study;
DMUs selected are container ports.
inputs - number of container berths, total berth length and port equipment.
As you explained, outputs must be increased by 39% to make the DMUs efficient on average using 1/0.717. Do you have any papers giving interpretations like that please? I really appreciate it
https://pdfs.semanticscholar.org › ...PDF
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Output oriented DEA model, CRS - Semantic Scholar
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