Formation/Cours

At the end of the course, the student should be able to:
– measure and explain producer performances.
– define and measure efficiency and productivity.
– apply microeconomic analysis to decision methods of businesses or other management units.
– bridge economic theory and management in practice.
– apply benchmarking and performance analysis to real managerial data.

Benchmarking methods are introduced. Productive performance can be measured with a variety of econometric and mathematical techniques. We will focus our attention on one family of them called “Data Envelopment Analysis” (DEA) and based on linear programming. Then, we apply benchmarking and performance analysis to real data.

• 1) Production Frontiers and Productive Efficiency
– Efficiency and Productivity: Definitions
– Measures of Productive Efficiency

• 2) Non Parametric Efficiency Measures and the DEA Model
– The productive possibility set: Definition and Assumptions
– DEA and its associated linear programs
– A pedagogical exercise with Excel

3) Efficiency Analysis of Banking Companies
– The Data set and the Variables of the Production Function
– Empirical illustration and computations of efficiency scores with Excel

4) Efficiency Analysis of the American industries over the period 1987-2014
– Material and methods
– Results and analysis