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Although a firm may achieve both technical and allocative efficiency, it may not operate optimally in terms of scale efficiency.
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This methodology is data envelopment analysis (DEA) and allows for the measurement of both technical efficiency and allocative efficiency of individual local exchange carriers.
By differentiating services provided, the proportions of human resource inputs will be greatly optimized and less healthcare cost will be spent with the optimized inputs, improving both technical efficiency and allocative efficiency.
Figure 2 Technical and allocative efficiencies.
In a manner similar to the cost framework, we decompose energy efficiency measurements into technical and allocative efficiencies in energy contents of inputs.
About this aspect, Barros [4] concludes that an organisational governance environment, with accountability, transparency and efficiency incentives, is needed to overcome the deficits in technical and allocative efficiencies observed in the Portuguese seaports analysed.
The overall efficiency of any DMU has two major components, that is, technical and allocative efficiency.
The overall efficiency for unit P4 can be found by the multiple of technical and allocative efficiency.
This study is on public health centres, it will important to examine technical and allocative efficiency by ownership of higher level facilities in Ghana like the district and regional hospitals.
Motivated by the classical agency theory which holds onto competitive contracts for specific services [ 12] the NHIA is currently piloting a capitation payment system to improve pricing and reimbursement activities as well as technical and allocative efficiency of hospitals.
The EHP, which comprises key health interventions against eleven diseases/conditions, is aimed at improving health outcomes through technical and allocative efficiency in service delivery; ensuring universal coverage of health services; and providing cost-effective interventions that address the priority health problems in Malawi.
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