Accounting for slacks to measure and decompose revenue efficiency in the Spanish Designation of Origin wines with DEA
We measure revenue inefficiency through an output-oriented Weighted Additive model. We decompose revenue inefficiency into technical and allocative inefficiency. Our technical component takes into consideration output slacks. We base our analysis on a recent approach introduced in Cooper et al. (2011a, EJOR). We apply the new approach to the Spanish quality wine sector.
slacks revenue inefficiency data envelopment analysis spanish wine sector