ABSTRACT

Figure 15.1 Technical efficiency index* for user satisfaction with level of services

Figure 15.2 Average output gain or cost saving from postulated improvement in technical efficiency in the production of USA TISF Efficiency improvement strategy: the least efficient are made as efficient as units at a prescribed higher percentile in the distribution ordered from least to most efficient

those with efficiencies lower than the unit which is at the fifth percentile point on the distribution of inefficiency would have their efficiency raised to the level of a unit at the fifth percentile. A second assumption is that all the units with inefficiencies lower than the level of the unit at the tenth percentile would be made as efficient as the unit at that tenth percentile level. And so on. That is, the efficiencies of the least efficient units would be improved to a prescribed semi-decile quantile (a percentile divisible by five) level higher than their current position in the ranking of units from the least to the most efficient. Theresults of these assumptions shown in the diagram illustrate the implications of choosing one of them rather than the others, and allow a comparison of this general strategy for improving efficiency with other strategies.