Measuring dynamic inefficiency in the presence of corporate social responsibility and input indivisibilities

This article proposes a model for evaluating inefficiency accounting firms’ corporate social responsibility engagement as part of their broader output production activities. The combines the marketable outputs, socially responsible and undesirable outputs into overall measures firm performance using data envelopment approaches. Methodologically, builds on dynamic by-production model, which accounts adjustment costs related with investments, allowing non-convexities set input indivisibility, well study compares technical scores each input, output, investment, estimated assuming presence indivisibility (non-convexity) its absence (convexity). empirical application focuses European firms in three industries (offering capital, consumption, other goods) period 2010–2017. results show significant differences between inefficiencies without convexity assumption find evidence non-convexity inputs’ indivisibility. Overall, among all reveal highest outputs.