Distinguishing Technical Inefficiency from Desirable and Undesirable Congestion with an Application to Regional Industries in China

Jun Wang and Yong Zha
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Jun Wang: School of Management, University of Science and Technology of China, Hefei 230026, China
Yong Zha: School of Management, University of Science and Technology of China, Hefei 230026, China

Sustainability, 2014, vol. 6, issue 12, 1-19

Abstract: Congestion is an important issue that requires the efficiency of decision-making units (DMUs). We first classify conventional congestion into congestion (newly defined) and technical inefficiency, based on prior research and real applications. Modified definitions and mathematical expression of congestion, managerial inefficiency, and technical inefficiency are proposed to better illustrate the differences between them. Several modified models are provided to identify and recognize those types of inefficiencies and congestion. We then extend the model by considering the desirable and undesirable types of congestion simultaneously. The proposed approach is applied and verified by identifying resource congestion and environmental inefficiencies in China’s economic development.

Keywords: data envelopment analysis; technical inefficiency; managerial inefficiency; desirable and undesirable congestion (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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