Foundations of Data Envelopment Analysis for Pareto-Koopmans Efficient Empirical Productions Functions.

The construction and analysis of Pareto-efficient frontier production functions by a new Data Envelopment Analysis method is presented in the context of new theoretical characterizations of the inherent structure and capabilities of such empirical production functions. Contrasts and connections with other developments, including solutions of some remaining problems, are made re aspects such as informatics, economies of scale, isotonicity and non-concavity, discretionary and non-discretionary inputs, piecewise linearity, partial derivatives and Cobb-Douglas properties of the functions. Non-Archimedean constructs are not required. Key Words include: Pareto-Koopmans Efficiency, Efficiency Analysis, Frontier Production Functions, Data Envelopment Analysis.
Revision of report dated Nov 84. Sponsored in part by Grant NSF-SES84-08134.