We develop a new indicator of profit inefficiency, which is based on decision-makers choosing the amount to spend on each input and the amount to earn on each output, rather than choosing physical quantities of inputs and outputs. The method is suitable for situations when prices and quantities...

In this paper, a dynamic network DEA model is developed to evaluate the potential gains in final output from a merger of two firms. The two firms are allowed to have different production technologies or share a common technology. In a beginning period each firm uses period specific inputs to...

This paper studies the performance of nineteen private commercial banks and two government-owned banks in Bangladesh during the period 2005–2008 using a slacks-based inefficiency measure and the directional technology distance function. Performance is measured assuming a black-box production...

Radial measures of efficiency estimated using linear programming (LP) methods can be biased since slack in the constraints defining the technology suggests that at least one input can be reduced, or one output can be expanded, even though a firm is deemed to be "technically efficient." In this...

We model the performance of DMUs (decision-making units) using a two-stage network model. In the first stage of production DMUs use inputs to produce an intermediate output that becomes an input to a second stage where final outputs are produced. Previous black box DEA models allowed for...

We extend Grosskopf et al.'s method and create an output loss indicator using directional output distance functions that allows non-radial efficiency gains in output. We compare our new output loss indicator with an indicator of input allocative inefficiency and derive the necessary and...