Two-Stage Network DEA with Bad Outputs

Hirofumi Fukuyama () and William L. Weber ()
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William L. Weber: Southeast Missouri State University

Chapter Chapter 19 in Data Envelopment Analysis, 2014, pp 451-474 from Springer

Abstract: Abstract Conventional black-box DEA models allow producer performance to be measured for technologies where undesirable outputs are jointly produced by-products of desirable output production. These models allow for non-radial scaling of desirable outputs, undesirable outputs, and inputs and can account for slacks in the constraints that define the technology. We review some of these black-box performance measures and show how to measure performance in two-stage network models. In these kinds of network models inputs are used to produce intermediate outputs in a first stage and then, those intermediate outputs become inputs to a second stage where final desirable outputs and undesirable outputs are produced. The bias from using a black-box model when a network technology exists is examined as well as the bias from ignoring slacks in the constraints defining the network technology.

Keywords: DEA; Two-stage network DEA; Network directional inefficiency; Network slacks-based inefficiency; Bad outputs; Black-box directional Russell inefficiency; Network directional Russell inefficiency; Budget-constrained inefficiency; Output loss indicator; Slack bias; Weakly efficient; Strongly efficient (search for similar items in EconPapers)
Date: 2014
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DOI: 10.1007/978-1-4899-8068-7_19

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