The Remarkable Incidence of Congestion in Production: A Review, Empirical Illustration, and Research Agenda

Suggested Citation
Kristiaan Kerstens and Ignace Van de Woestyne (2019), “The Remarkable Incidence of Congestion in Production: A Review, Empirical Illustration, and Research Agenda”, Data Envelopment Analysis Journal: Vol. 4: No. 2, pp 109-147. http://dx.doi.org/10.1561/103.00000026
Publication Date: 12 Dec 2019
© 2019 K. Kerstens and I. Van de Woestyne
Keywords
Nonparametric technology, congestion

JOURNALS

In this article:
1. Introduction
2. Technologies: Definition, Subsets, and Representation
3. Technical Inefficiency and Congestion: Framework and Empirical Perspective on Congestion Measures and Incidence
4. Empirical Illustration
5. Research Agenda
6. Conclusions
Appendix: Computing the Asymmetric Efficiency Measure
References

Abstract

This contribution surveys the existing economic literature measuring congestion using nonparametric specifications of technologies. The focus is on the magnitude and especially the incidence of the congestion detected using traditional radial input-oriented efficiency measures. Furthermore, it shows the limitations of this radial measurement and how alternative measurement schemes may reveal higher amounts of congestion. This is empirically illustrated using a variety of secondary data sets (which guarantees replicability of our results).

DOI:10.1561/103.00000026

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