Non-Radial Directional Performance Measurement with Undesirable Outputs

Po-Chi Chen, Ming-Miin Yu, Ching-Cheng Chang and Shunsuke Managi

MPRA Paper from University Library of Munich, Germany

Abstract: The objective of this paper is to provide a comprehensive efficiency measures to estimate the performances of OECD and non-OECD countries. A Russell directional distance function that appropriately credits the decision making unit not only for increase in desirable outputs but also for the decrease of undesirable outputs is derived from the proposed weighted Russell directional distance model. The method was applied to a panel of 99 countries over 1991 and 2003. This framework also decomposes the comprehensive efficiency measure into individual input/output components’ inefficiency scores that are useful for policy making. The results reveal that the OECD countries perform better than the non-OECD countries in overall, goods, labor and capital efficiencies, but worse in bad and energy efficiencies.

Keywords: data envelopment analysis; directional distance function; undesirable output; Russell measure; slacks-based model (search for similar items in EconPapers)
JEL-codes: E27 Q0 Q40 Q43 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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