Efficiency measurement with a non-convex free disposal hull technology

TY - JOUR

T1 - Efficiency measurement with a non-convex free disposal hull technology

AU - Fukuyama, Hirofumi

AU - Hougaard, Jens Leth

AU - Sekitani, Kazuyuki

AU - Shi, Jianming

PY - 2016/1/1

Y1 - 2016/1/1

N2 - We investigate the basic monotonicity properties of least-distance (in)efficiency measures on the class of non-convex FDH (free disposable hull) technologies. We show that any known FDH least-distance measure violates strong monotonicity over the strongly (Pareto-Koopmans) efficient frontier. Taking this result into account, we develop a new class of FDH least-distance measures that satisfy strong monotonicity and show that the developed (in)efficiency measurement framework has a natural profit interpretation.

AB - We investigate the basic monotonicity properties of least-distance (in)efficiency measures on the class of non-convex FDH (free disposable hull) technologies. We show that any known FDH least-distance measure violates strong monotonicity over the strongly (Pareto-Koopmans) efficient frontier. Taking this result into account, we develop a new class of FDH least-distance measures that satisfy strong monotonicity and show that the developed (in)efficiency measurement framework has a natural profit interpretation.

U2 - 10.1057/jors.2015.41

DO - 10.1057/jors.2015.41

M3 - Journal article

SN - 0160-5682

VL - 67

SP - 9

EP - 19

JO - Journal of the Operational Research Society

JF - Journal of the Operational Research Society

IS - 1

ER -