Nonradial directional performance measurement with undesirable outputs: An application to OECD and non-OECD countries

Po Chi Chen, Ming Miin Yu, Ching Cheng Chang, Shih Hsun Hsu, Shunsuke Managi

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)481-520
Number of pages40
JournalInternational Journal of Information Technology and Decision Making
Volume14
Issue number3
DOIs
Publication statusPublished - May 22 2015
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Computer Science (miscellaneous)

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