We discuss how to properly decompose economic efficiency when the underlying technology is non-homothetic using alternative allocative and technical efficiency criteria. We first show that only under the production of one output and assuming the particular case of constant returns to scale...

We discuss how to properly decompose economic efficiency when the underlying technology is non-homothetic using alternative allocative and technical efficiency criteria. We first show that only under the production of one output and assuming the particular case of constant returns to scale...

The directional distance function has been introduced in the efficiency literature with the intention of relaxing the fixed orientations represented by its classical input and output counterparts. However, the criteria underlying the choice of its associated directional vector are numerous. When...

In this survey we present, for the first time, a classification scheme for distance functions, considering two broad groups: the multiplicative and the additive distance functions. Guiding empirical work is one of the major objectives of this paper; for this reason we consider only linear...

In this paper, we show how Data Envelopment Analysis (DEA) may be used to measure and decompose revenue inefficiency, taking into account all sources of technical waste in the context of an application to assess the Spanish quality wine sector, in particular Designation of Origin (DO) wines. We...

Apart from the well-known weaknesses of the standard Malmquist productivity index related to infeasibility and not accounting for slacks, already addressed in the literature, we identify a new and significant drawback of the Malmquist–Luenberger index decomposition that questions its validity...

Apart from the well-known weaknesses of the standard Malmquist productivity index related to infeasibility and not accounting for slacks, already addressed in the literature, we identify a new and significant drawback of the Malmquist-Luenberger index decomposition that questions its validity as...