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Technical efficiency

An efficiency measure that ignores the impact of scale-size by comparing a DMU only to other units of similar scale. Technical efficiency is computed using the BCC model. Overall efficiency is sometimes referred to as technical efficiency as closely follows the concept of technical efficiency developed by Farrell (1957), which technical efficiency as defined here, is known as ‘pure technical efficiency’. [Farrell M J (1957), ‘The measurement of productive efficiency’, J. Roy. Statist. Soc., 120, pp 253-290.]

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