Abstract
This paper extends two directional distance function models, the Multi-directional Efficiency Analysis (MEA) Model and the Range Directional Model (RDM), in order to account for any type of technical inefficiency, i.e. both directional and non-directional inefficiencies. We first focus on the variable returns to scale (VRS) case, because both VRS-MEA and RDM are translation invariant models, which mean that both models are able to deal with negative data. Our main result is the definition of a new comprehensive efficiency measure which is units invariant and translation invariant and covers both models. Secondly, we introduce the RDM model under constant returns to scale (CRS) together with a new comprehensive efficiency measure.
Original language | English |
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Journal | Omega |
Volume | 38 |
Issue number | 6 |
Pages (from-to) | 475-483 |
Number of pages | 9 |
ISSN | 0305-0483 |
DOIs | |
Publication status | Published - Dec 2010 |
Externally published | Yes |
Keywords
- Comprehensive efficiency measures
- DEA
- Directional distance functions
- Efficiency analysis
- MEA
- RDM
- Slack free models