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Super-efficiency based on a modified directional distance function

Author

Listed:
  • Chen, Yao
  • Du, Juan
  • Huo, Jiazhen

Abstract

The problem of infeasibility arises in conventional radial super-efficiency data envelopment analysis (DEA) models under variable returns to scale (VRS). To tackle this issue, a Nerlove–Luenberger (N–L) measure of super-efficiency is developed based on a directional distance function. Although this N–L super-efficiency model does not suffer infeasibility problem as in the conventional radial super-efficiency DEA models, it can produce an infeasible solution in two special situations. The current paper proposes to modify the directional distance function by selecting proper feasible reference bundles so that the resulting N–L measure of super-efficiency is always feasible. As a result, our modified VRS super-efficiency model successfully addresses the infeasibility issues occurring either in conventional VRS models or the N–L super-efficiency model. Numerical examples are used to demonstrate our approach and compare results obtained from various super-efficiency measures.

Suggested Citation

  • Chen, Yao & Du, Juan & Huo, Jiazhen, 2013. "Super-efficiency based on a modified directional distance function," Omega, Elsevier, vol. 41(3), pages 621-625.
  • Handle: RePEc:eee:jomega:v:41:y:2013:i:3:p:621-625
    DOI: 10.1016/j.omega.2012.06.006
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    References listed on IDEAS

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    Cited by:

    1. Diogo Cunha Ferreira & Rui Cunha Marques, 2016. "Malmquist and Hicks–Moorsteen Productivity Indexes for Clusters Performance Evaluation," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 15(05), pages 1015-1053, September.
    2. Branda, Martin, 2015. "Diversification-consistent data envelopment analysis based on directional-distance measures," Omega, Elsevier, vol. 52(C), pages 65-76.
    3. Leleu, Hervé, 2013. "Inner and outer approximations of technology: A shadow profit approach," Omega, Elsevier, vol. 41(5), pages 868-871.
    4. Liu, John S. & Lu, Louis Y.Y. & Lu, Wen-Min & Lin, Bruce J.Y., 2013. "A survey of DEA applications," Omega, Elsevier, vol. 41(5), pages 893-902.
    5. Liu, John S. & Lu, Louis Y.Y. & Lu, Wen-Min, 2016. "Research fronts in data envelopment analysis," Omega, Elsevier, vol. 58(C), pages 33-45.
    6. Ke Wang & Yujiao Xian & Chia-Yen Lee & Yi-Ming Wei & Zhimin Huang, 2017. "On selecting directions for directional distance functions in a non-parametric framework: A review," CEEP-BIT Working Papers 99, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    7. repec:spr:orspec:v:39:y:2017:i:3:d:10.1007_s00291-017-0475-1 is not listed on IDEAS
    8. Arabi, Behrouz & Munisamy, Susila & Emrouznejad, Ali, 2015. "A new slacks-based measure of Malmquist–Luenberger index in the presence of undesirable outputs," Omega, Elsevier, vol. 51(C), pages 29-37.
    9. Fang, Hsin-Hsiung & Lee, Hsuan-Shih & Hwang, Shiuh-Nan & Chung, Cheng-Chi, 2013. "A slacks-based measure of super-efficiency in data envelopment analysis: An alternative approach," Omega, Elsevier, vol. 41(4), pages 731-734.
    10. Gadanakis, Yiorgos & Bennett, Richard & Park, Julian & Areal, Francisco Jose, 2015. "Improving productivity and water use efficiency: A case study of farms in England," Agricultural Water Management, Elsevier, vol. 160(C), pages 22-32.
    11. repec:pal:jorsoc:v:68:y:2017:i:11:d:10.1057_s41274-016-0137-8 is not listed on IDEAS
    12. repec:spr:soinre:v:136:y:2018:i:3:d:10.1007_s11205-016-1535-7 is not listed on IDEAS
    13. Ghasemi, M.-R. & Ignatius, Joshua & Emrouznejad, Ali, 2014. "A bi-objective weighted model for improving the discrimination power in MCDEA," European Journal of Operational Research, Elsevier, vol. 233(3), pages 640-650.
    14. Ruiyue Lin & Zhiping Chen & Qianhui Hu & Zongxin Li, 0. "Dynamic network DEA approach with diversification to multi-period performance evaluation of funds," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 0, pages 1-40.
    15. repec:eee:ejores:v:264:y:2018:i:2:p:665-674 is not listed on IDEAS

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