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Therefore, (beta) is determined as the value that gives the maximum expansion of the desirable outputs and contraction of the undesirable outputs for a given level of inputs.
The system that can produce the greatest useful work for a given level of inputs is the more efficient system.
For a given level of inputs, the Pareto efficient output is the one that maximises health gains subject to the Pareto criterion.
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Technical efficiency (TE) refers to the ability of a decision making unit to produce maximum output that is feasible from a given level of inputs (i.e. maximizing output from a given level of inputs).
In the health literature, efficiency is implicitly taken to mean the production of the greatest health gains for a given level of input (see for example, [ 12]).
This primal linear programming model represents an output-oriented approach, while its dual formulation indicates an input orientation (for a given level of outputs, inputs are minimized).
Technical Efficiency index represents the capacity of an economy to produce a higher level of Gross Domestic Product for a given level of total energy input.
In input-oriented TE focuses on reducing input quantities used for a given level of outputs.
For a given production technology, the suppliers choose a combination of inputs such that costs are minimized for a given level of output.
When using input orientation, TE may be defined as minimizing input/resource use for a given level of outputs.
Under the output-oriented models, we try to find out the answer which maximum level of outputs can be achieved by using the given level of inputs in order for DMUs to be considered effective.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com