Multi-output efficiency with good and bad outputs

Laurens Cherchye, Bram De Rock and Barnabé Walheer

European Journal of Operational Research, 2015, vol. 240, issue 3, 872-881

Abstract: Cherchye, De Rock, Dierynck, Roodhooft, and Sabbe (2013) introduced a DEA methodology that is specially tailored for multi-output efficiency measurement. The methodology accounts for jointly used inputs and incorporates information on how inputs are allocated to outputs. In this paper, we present extensions that render the methodology useful to deal with undesirable (or “bad”) outputs in addition to desirable (or “good”) outputs. Interestingly, these extensions deal in a natural way with several limitations of existing DEA approaches to treat undesirable outputs. We also demonstrate the practical usefulness of our methodological extensions through an application to US electric utilities.

Keywords: DEA; Multi-output production; (Sub-)joint inputs; Output objectives; Undesirable outputs (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (46)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0377221714005943
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Multi-Output Efficiency with Good and Bad Outputs (2013)
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:eee:ejores:v:240:y:2015:i:3:p:872-881

DOI: 10.1016/j.ejor.2014.07.028

Access Statistics for this article

European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati

More articles in European Journal of Operational Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().