Economic activity produces not only desirable outputs but also undesirable outputs that are usually called negative externalities in economic theory. Negative externalities are usually omitted from efficiency assessments (i.e., applications of Data Envelopment Analysis) which fail to express the...

This paper applies a data envelopment analysis (DEA) method to assess technical efficiency of both private and public universities in Italy. Moving from the traditional context where inputs and outputs are assumed to be non-negative, a directional distance function approach has been applied in...

This paper employs directional distance function to evaluate the technical efficiency of twenty major Chinese airports from 2006 to 2009 within a joint production framework of desirable and undesirable output (i.e. flight delays). The results indicate that the overall average efficiencies of...

Estimation of efficiency of firms in a non-competitive market characterized by heterogeneous inputs and outputs along with their varying prices is questionable when factor-based technology sets are used in data envelopment analysis (DEA). In this scenario, a value-based technology becomes an...

Economic activity produces not only desirable outputs but also undesirable outputs. Undesirable outputs are usually omitted from efficiency assessments (i.e., applications of Data Envelopment Analysis) which fail to express the true production process. The directional distance function model has...

As a measure of overall technical inefficiency, the Directional Distance Function (DDF) introduced by Chambers, Chung, and Färe ties the potential output expansion and input contraction together through a single parameter. By duality, the DDF is related to a measure of profit inefficiency,...

This article studies the role of social capital on cotton production efficiency and productivity for a sample of small farms in Maharashtra, India using data envelopment analysis. Input shadow prices are computed as an indicator of the importance of social capital relative to other inputs....

This paper presents a non-radial directional distance function approach to modeling energy and CO2emission performance in electricity generation from the production efficiency point of view. We first define and construct the environmental production technologies for the countries with and...

An efficiency indicator of industry configuration (allowing for entry/exit of firms) is presented which accounts for four sources components: (1) size inefficiencies arising from firms which can be conveniently split into smaller units; (2) efficiency gains realized through merger of firms; (3)...

The directional distance function model is a generalization of the radial model in data envelopment analysis (DEA). The directional distance function model is appropriate for dealing with cases where undesirable outputs exist. However, it is not a units-invariant measure of efficiency, which...