DEA and Directional Distance Functions

Rolf Färe, Shawna Grosskopf and Dimitris Margaritis

Chapter 4 in Advances in Data Envelopment Analysis, 2015, pp 53-67 from World Scientific Publishing Co. Pte. Ltd.

Abstract: In Chapter 4 we undertake an in-depth study of directional distance functions and how they apply to DEA…We begin the chapter with a discussion of the directional vectors and how they influence the DEA scores for inefficient DMUs. We next consider the role of the direction vectors when the goal is to aggregate across DMUs. Here we show that aggregation is facilitated when the DMUs are given the same direction vector, in particular the unit direction.The concluding section addresses the choice of direction in general, and how to endogenize that choice in particular. This leads us to a discussion of directional distance functions and their indication properties, i.e., the subsets of the technology to which the DMUs under evaluation are projected. We also show how the endogenization of the directions are related to slackbased directional distance functions.An appendix including an indication theorem concludes.

Keywords: Optimization Techniques; Multifactor Productivity; Intertemporal Firm Choice; Technological Change: Choices and Consequences; Diffusion Processes; Data Envelopment Analysis; Operations Research (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789814644556_0004 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789814644556_0004 (text/html)
Ebook Access is available upon purchase.

Related works:
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:wsi:wschap:9789814644556_0004

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().