TY - JOUR
T1 - Nonradial directional performance measurement with undesirable outputs
T2 - An application to OECD and non-OECD countries
AU - Chen, Po Chi
AU - Yu, Ming Miin
AU - Chang, Ching Cheng
AU - Hsu, Shih Hsun
AU - Managi, Shunsuke
N1 - Publisher Copyright:
© 2015 World Scientific Publishing Company.
PY - 2015/5/22
Y1 - 2015/5/22
N2 - The objective of this paper is to provide a more comprehensive efficiency measure to estimate the performance of OECD and non-OECD countries. A Russell directional distance function that appropriately credits the decision-making unit not only for increase in desirable outputs but also for the decrease of undesirable outputs is derived from the proposed weighted Russell directional distance model. The method was applied to a panel of 116 countries from 1992 to 2010. This framework also decomposes the comprehensive efficiency measure into individual input/output components' inefficiency scores that are useful for policy making. The results reveal that the OECD countries perform better than the non-OECD countries in overall, goods, labor and capital efficiencies, but worse in bad and energy efficiencies.
AB - The objective of this paper is to provide a more comprehensive efficiency measure to estimate the performance of OECD and non-OECD countries. A Russell directional distance function that appropriately credits the decision-making unit not only for increase in desirable outputs but also for the decrease of undesirable outputs is derived from the proposed weighted Russell directional distance model. The method was applied to a panel of 116 countries from 1992 to 2010. This framework also decomposes the comprehensive efficiency measure into individual input/output components' inefficiency scores that are useful for policy making. The results reveal that the OECD countries perform better than the non-OECD countries in overall, goods, labor and capital efficiencies, but worse in bad and energy efficiencies.
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U2 - 10.1142/S0219622015500091
DO - 10.1142/S0219622015500091
M3 - Article
AN - SCOPUS:84929606660
VL - 14
SP - 481
EP - 520
JO - International Journal of Information Technology and Decision Making
JF - International Journal of Information Technology and Decision Making
SN - 0219-6220
IS - 3
ER -