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Distinguishing Technical Inefficiency from Desirable and Undesirable Congestion with an Application to Regional Industries in China

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  • Jun Wang

    (School of Management, University of Science and Technology of China, Hefei 230026, China)

  • Yong Zha

    (School of Management, University of Science and Technology of China, Hefei 230026, China)

Abstract

Congestion is an important issue that requires the efficiency of decision-making units (DMUs). We first classify conventional congestion into congestion (newly defined) and technical inefficiency, based on prior research and real applications. Modified definitions and mathematical expression of congestion, managerial inefficiency, and technical inefficiency are proposed to better illustrate the differences between them. Several modified models are provided to identify and recognize those types of inefficiencies and congestion. We then extend the model by considering the desirable and undesirable types of congestion simultaneously. The proposed approach is applied and verified by identifying resource congestion and environmental inefficiencies in China’s economic development.

Suggested Citation

  • Jun Wang & Yong Zha, 2014. "Distinguishing Technical Inefficiency from Desirable and Undesirable Congestion with an Application to Regional Industries in China," Sustainability, MDPI, vol. 6(12), pages 1-19, December.
    • Handle: RePEc:gam:jsusta:v:6:y:2014:i:12:p:8808-8826:d:43010
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    2. Caroline Oates & Panayiota Alevizou & Seonaidh McDonald, 2016. "Challenges for Marketers in Sustainable Production and Consumption," Sustainability, MDPI, vol. 8(1), pages 1-4, January.

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