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“Bad outputs as inputs”, reverse outputs and extended strong disposability

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  • Giannis Karagiannis

    (University of Macedonia)

  • Stavros Kourtzidis

    (University of Dundee)

Abstract

In this paper we examine the relation between the “bad outputs as inputs” with other approaches of modeling undesirable outputs in non-parametric production analysis and we end up with six equivalencies among them. Based on these, we argue that the “bad outputs as inputs” is a valid modeling option as long as the assumption of extended strong disposability and thus of reverse outputs is reasonable in a particular setting. In this case, the “bad outputs as inputs” approach can easily be implemented by means of a conventional input-oriented DEA model with variable returns to scale where the translated additive inverse transformation is applied to undesirable output quantities.

Suggested Citation

  • Giannis Karagiannis & Stavros Kourtzidis, 2025. "“Bad outputs as inputs”, reverse outputs and extended strong disposability," Annals of Operations Research, Springer, vol. 351(3), pages 1925-1939, August.
    • Handle: RePEc:spr:annopr:v:351:y:2025:i:3:d:10.1007_s10479-025-06735-0
    DOI: 10.1007/s10479-025-06735-0
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