Environmental factors add complexity to the comparison between specific activities or entire entities. Decision making units with an inferior performance are tempted to invoke that their organization is different from the others in the data set. By reinterpreting and extending the metafrontier...

Previous work on the relation between school inputs and students' educational attainment typically fails to account for the fact that schools can adjust their grading structure, even though such actions are likely to affect students' incentives. Our theoretical model shows that, depending on...