Measurement of multiperiod aggregative efficiency

This article proposes a new method for measuring an aggregative efficiency of multiple period production systems. Every organization or firm generates a time series of data that represent its performances in the resource utilization and output production over multiple periods, and often desires an aggregated measure of efficiency for several periods of interest. Data envelopment analysis (DEA) has become an accepted and well-known approach to evaluating efficiency performance in a wide range of cases. However, most of the DEA studies have dealt primarily with ways to gauge the efficiency of production in only a single period so this efficiency reflects the insufficient or partial performance of multiple period productions. The new method is developed through extensions of the concept of Debreu–Farrell technical efficiency and is applied to evaluating the efficiency of cable TV service units with 3-year data.