Efficiency measurement with a non-convex free disposal hull technology

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningfagfællebedømt

We investigate the basic monotonicity properties of least-distance (in)efficiency measures on the class of non-convex FDH (free disposable hull) technologies. We show that any known FDH least-distance measure violates strong monotonicity over the strongly (Pareto-Koopmans) efficient frontier. Taking this result into account, we develop a new class of FDH least-distance measures that satisfy strong monotonicity and show that the developed (in)efficiency measurement framework has a natural profit interpretation.
OriginalsprogEngelsk
TidsskriftJournal of the Operational Research Society
Vol/bind67
Udgave nummer1
Sider (fra-til)9–19
Antal sider11
ISSN0160-5682
DOI
StatusUdgivet - 2016

ID: 140015672