| Author: | Mensah, Y. Li, Sh. |
| Title: | Measuring production efficiency in a not-for-profit setting: an extension |
| Journal: | Accounting Review
1993 : JAN, VOL. 68:1, p. 66-88 |
| Index terms: | EFFICIENCY PRODUCTION MEASUREMENT PROFIT |
| Language: | eng |
| Abstract: | The main objective of this study is to extend Hayes and Milla's idea of a translog budget model by outlining a more complete budgetary system. It is shown that a frontier cost function generated from the ordinary least squares (OLS) translog function can be used to identify four types of inefficiencies: the degree of technical, allocative and scale inefficiency as well as institutional X-inefficiency (Liebenstein 1966). These four types of inefficiency are then linked to both the long-term and short term objectives of budgeting; namely, performance evaluation, subordinate manager motivation, planning and control. |
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