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...

This paper evaluates the production activities of Japanese airports from 1987-2005 by using the directional slacks-based Inefficiency Data Envelopment Analysis model. Three measures of efficiency are estimated: the SBI-directional slacks-based inefficiency measure, the directional distance...