The determination of the least distance to the strongly efficient frontier in Data Envelopment Analysis oriented models: modelling and computational aspects

Juan Aparicio, Jose M. Cordero and Jesús Pastor

MPRA Paper from University Library of Munich, Germany

Abstract: Determining the least distance to the efficient frontier for estimating technical inefficiency, with the consequent determination of closest targets, has been one of the relevant issues in recent Data Envelopment Analysis literature. This new paradigm contrasts with traditional approaches, which yield furthest targets. In this respect, some techniques have been proposed in order to implement the new paradigm. A group of these techniques is based on identifying all the efficient faces of the polyhedral production possibility set and, therefore, is associated with the resolution of a NP-hard problem. In contrast, a second group proposes different models and particular algorithms to solve the problem avoiding the explicit identification of all these faces. These techniques have been applied more or less successfully. Nonetheless, the new paradigm is still unsatisfactory and incomplete to a certain extent. One of these challenges is that related to measuring technical inefficiency in the context of oriented models, i.e., models that aim at changing inputs or outputs but not both. In this paper, we show that existing specific techniques for determining the least distance without identifying explicitly the frontier structure for graph measures, which change inputs and outputs at the same time, do not work for oriented models. Consequently, a new methodology for satisfactorily implementing these situations is proposed. Finally, the new approach is empirically checked by using a recent PISA database consisting of 902 schools.

Keywords: Data Envelopment Analysis; least distance; oriented models (search for similar items in EconPapers)
JEL-codes: C60 C61 H52 (search for similar items in EconPapers)
Date: 2016-07
New Economics Papers: this item is included in nep-ecm and nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/72630/2/MPRA_paper_72630.pdf original version (application/pdf)

Related works:
Journal Article: The determination of the least distance to the strongly efficient frontier in Data Envelopment Analysis oriented models: Modelling and computational aspects (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:72630

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().