In this paper we investigate inputs/outputs estimate in the presence of undesirable factors. We discuss such questions: suppose some outputs (inputs) are undesirable and among a group of decision making units (DMUs) a DMU changes (increases and decreases simultaneously) some of its input (output) levels, how much outputs (inputs) could the unit change such that its efficiency index remains unch...

Cherchye et al. (2013b) introduced a DEA methodology that is specially tailored for multi-output efficiency measurement. The methodology accounts for jointly used inputs and incorporates information on how inputs are allocated to outputs. In this paper, we present extensions that render the methodology useful to deal with undesirable (or “bad”) outputs in addition to desirable (or “good”) outpu...

Weak disposability of outputs means that firms can abate harmful emissions by decreasing the activity level. Modeling weak disposability in nonparametric production analysis has caused some confusion. This paper identifies a dilemma in these approaches: conventional formulations implicitly and unintentionally assume all firms apply uniform abatement factors. However, it is usually cost efficien...

Since data envelopment analysis (DEA) introduced in 1970s, it has been widely applied to measure the efficiency of a wide variety of production and operation systems. Recently DEA has been extended to examine the efficiency of decision making units (DMUs) with two-stage network structures or processes, where the outputs from the first stage are intermediate measures that make up the inputs of t...

The general practice in performance and production efficiency measurement has been to ignore additional products of most transformation processes that can be classified as " undesirable outputs " — which are a subset of the output set. Without the inclusion of these factors, the efficiency evaluation becomes a purely technical measure of the system alone, and does not account for the interactio...

In this article, we introduce two community-contributed data envelopment analysis commands for measuring technical efficiency and productivity change in Stata. Over the last decades, an important theoretical progression of analysis, a nonparametric method widely used to assess performance decision-making units, is incorporation undesirable outputs. Models able deal with outputs have been develo...