TY - JOUR
T1 - Procedures for ranking technical and cost efficient units
T2 - With a focus on nonconvexity
AU - Kerstens, Kristiaan
AU - Sadeghi, Jafar
AU - Toloo, Mehdi
AU - Van de Woestyne, Ignace
N1 - Funding Information:
The research of Mehdi Toloo was supported by the Czech Science Foundation (GAČR 19-13946S ).
Publisher Copyright:
© 2021 Elsevier B.V.
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PY - 2022/7/1
Y1 - 2022/7/1
N2 - This contribution extends the literature on super-efficiency by focusing on ranking cost-efficient observations. To the best of our knowledge, the focus has always been on technical super-efficiency and this focus on ranking cost-efficient observations may well open up a new topic. Furthermore, since the convexity axiom has both an impact on technical and cost efficiency, we pay a particular attention to the effect of nonconvexity on both super-efficiency notions. Apart from a numerical example, we use a secondary data set guaranteeing replication to illustrate these efficiency and super-efficiency concepts. Two empirical conclusions emerge. First, the cost super-efficiency notion ranks differently from the technical super-efficiency concept. Second, both cost and technical super-efficiency notions rank differently under convex and nonconvex technologies.
AB - This contribution extends the literature on super-efficiency by focusing on ranking cost-efficient observations. To the best of our knowledge, the focus has always been on technical super-efficiency and this focus on ranking cost-efficient observations may well open up a new topic. Furthermore, since the convexity axiom has both an impact on technical and cost efficiency, we pay a particular attention to the effect of nonconvexity on both super-efficiency notions. Apart from a numerical example, we use a secondary data set guaranteeing replication to illustrate these efficiency and super-efficiency concepts. Two empirical conclusions emerge. First, the cost super-efficiency notion ranks differently from the technical super-efficiency concept. Second, both cost and technical super-efficiency notions rank differently under convex and nonconvex technologies.
KW - Cost efficiency
KW - Data envelopment analysis
KW - Free disposal hull
KW - Super-efficiency
KW - Technical efficiency
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U2 - 10.1016/j.ejor.2021.10.023
DO - 10.1016/j.ejor.2021.10.023
M3 - Article
AN - SCOPUS:85118711616
SN - 0377-2217
VL - 300
SP - 269
EP - 281
JO - European Journal of Operational Research
JF - European Journal of Operational Research
IS - 1
M1 - 1
ER -