A critical review of the main methods to treat undesirable outputs in DEA

George Halkos and Kleoniki Natalia Petrou

MPRA Paper from University Library of Munich, Germany

Abstract: The treatment of undesirable outputs in Data Envelopment Analysis (DEA) has received great research attention recently. As such and as are presented in this work, there are four possible options to deal with those: first ignoring them from the production function; second treating them as regular inputs; third treating them as normal outputs and fourth performing necessary transformations to take them into account. Also new model propositions for their treatment are being presented. Each method brings with it, benefits and drawbacks which each researcher should take into account at every stage of their research and assess which method is more appropriate to be used.

Keywords: Environmental efficiency; DEA; undesirable outputs. (search for similar items in EconPapers)
JEL-codes: N5 O44 Q56 Q58 (search for similar items in EconPapers)
Date: 2018-12
New Economics Papers: this item is included in nep-eff
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:90374

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