Formation/Cours

measure and explain producer performances.
– define and measure efficiency and productivity. (LO7A)
– apply microeconomic analysis to decision methods of businesses or other management units. (LO5C, LO7C)
– bridge economic theory and management in practice. (LO5A)
– use quantitative techniques such as index numbers, productivity accounting, price recoveries.(LO5A)
– apply benchmarking and performance analysis to real managerial data. (LO5D, LO7B)
– develop a research project within a multi-cultural student group. (LO1A)
– present results orally to a committee composed of academic and professional members. (LO1C)

The course is divided in two main chapters. First, performances of DMUs are analyzed through a decomposition of profit change into quantity and price effects. We present a general methodology based on productivity literature in economics to measure the economic value creation and its distribution among stakeholders. Second, 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.

Chapter I
1) Profit change or Global Performance, Productivity Surplus and Price Advantage
a) Profit decomposition
b) An illustrative example
c) Real world applications

2) Index numbers and productivity measurement
a) Conceptual Framework and Formulae
b) Productivity and Price recovery indexes
c) Real world applications

3) Productivity Accounting
a) Productivity Surplus and TFP growth rate
b) Distribution of the financial benefits of productivity changes
c) Case studies

Chapter II
1) Production Frontiers and Productive Efficiency
a) Efficiency and Productivity: Definitions
b) Different Measures of Productive Efficiency

2) Non Parametric Efficiency Measures and the DEA Model
a) The productive possibility set: Definition and Assumptions
b) DEA and its associated linear programs
c) DEA computations of efficiency scores with Excel

3) Illustrative example
a) The Data set and the Variables
b) Computations and interpretations of results