From Ricardo to DEA: Revolutionizing Economic Efficiency and Resource Allocation
The article discusses how economic theories about production have evolved over time, from classical to neoclassical ideas, and now to modern techniques like Data Envelopment Analysis (DEA). Classical economists focused on labor, while neoclassical economists shifted to considering both labor and capital. DEA helps analyze how efficiently inputs are turned into outputs, considering factors like good and bad outputs and shadow prices.