“Bad outputs as inputs”, reverse outputs and extended strong disposability

Giannis Karagiannis () and Stavros Kourtzidis
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Giannis Karagiannis: University of Macedonia

Annals of Operations Research, 2025, vol. 351, issue 3, No 6, 1925-1939

Abstract: Abstract In this paper we examine the relation between the “bad outputs as inputs” with other approaches of modeling undesirable outputs in non-parametric production analysis and we end up with six equivalencies among them. Based on these, we argue that the “bad outputs as inputs” is a valid modeling option as long as the assumption of extended strong disposability and thus of reverse outputs is reasonable in a particular setting. In this case, the “bad outputs as inputs” approach can easily be implemented by means of a conventional input-oriented DEA model with variable returns to scale where the translated additive inverse transformation is applied to undesirable output quantities.

Keywords: “Bad outputs as inputs”; Extended strong disposability; Reverse outputs; Data envelopment analysis (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10479-025-06735-0

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