Journal
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
Volume 245, Issue 1, Pages 203-208Publisher
ELSEVIER
DOI: 10.1016/j.ejor.2015.03.001
Keywords
Data envelopment analysis; Undesirable output; Congestion
Funding
- National Natural Science Foundation of China [71371101]
- Project of Humanities and Social Sciences of Ministry of Education in China [12YJA630028]
- Fundamental Research Funds for the Central Universities
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Congestion is a widely observed economic phenomenon where outputs are reduced due to excessive amount of inputs. The previous approaches to identify congestion in nonparametric analysis only consider desirable outputs. In the production process, undesirable outputs are usually jointly produced with desirable outputs. In this paper, we propose an approach for measuring congestion in the presence of desirable and undesirable outputs simultaneously. The proposed approach can discriminate between the congested DMUs and the truly efficient DMUs, which are all efficient according to the scores calculated by the directional distance function. Finally, an empirical example is used to illustrate the approach. (C) 2015 Elsevier B.V. All rights reserved.
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