Directional output distance functions: endogenous directions based on exogenous normalization constraints

R. Färe, Shawna Grosskopf and G. Whittaker

Journal of Productivity Analysis, 2013, vol. 40, issue 3, 267-269

Abstract: In response to a question raised by Knox Lovell, we develop a method for estimating directional output distance functions with endogenously determined direction vectors based on exogenous normalization constraints. This is reminiscent of the Russell measure proposed by Färe and Lovell (J Econ Theory 19:150–162, 1978 ). Moreover it is related to the slacks-based directional distance function introduced by Färe and Grosskopf (Eur J Oper Res 200:320–322, 2010a , Eur J Oper Res 206:702, 2010b ). Here we show how to use the slacks-based function to estimate the optimal directions. Copyright Springer Science+Business Media New York 2013

Keywords: DEA; Directional distance functions; Slack-based measures; C61; D24; D92; O33 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (72)

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DOI: 10.1007/s11123-012-0333-8

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