Undesirable factors in efficiency measurement

Hadi-Vencheh, A.; Matin, Reza Kazemi; Kajani, M. Tavassoli

doi:10.1016/j.amc.2004.02.022

Cited by 60 publications

(27 citation statements)

References 7 publications

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“…More recent discussions on estimating efficiency with undesirable outputs appear in Vencheh et al (2005), Jahanshahloo et al (2005), and Zhou et al (2006). These discussions, however, mostly provide summaries of existing methods for estimating technical efficiency when production involves undesirable outputs.…”

Section: Concluding Assessment Of Methodsmentioning

confidence: 99%

Estimating Fishing Vessel Capacity: A Comparison of Nonparametric Frontier Approaches

Walden

Tomberlin

2010

Marine Resource Economics

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ii Executive SummaryFishery managers throughout the world are concerned about finding ways to reduce undesirable and nonmarketable bycatch (i.e., bycatch discards) and excess harvesting capacity. Both of these issues are associated with economic waste in the form of unnecessarily high production costs, potential reductions in future harvest levels, or unnecessary utilization of factors of production to discard undesired catch. The Food and Agriculture Organization (FAO) of the United Nations, the National Marine Fisheries Service (NOAA Fisheries), and various member nations of the FAO adopted a voluntary code entitled The Code of Conduct for Responsible Fisheries in 1995, which promotes the reduction in bycatch discards and excess capacity in commercial fisheries.Extensive progress has been made towards reducing bycatch of undesired species through new regulations and modifications to traditional fishing gear. Substantial progress has also been made towards assessing and reducing harvesting capacity in fisheries. Unfortunately, these efforts have been made in isolation. That is, efforts to reduce bycatch have not concurrently considered the ramifications of bycatch reduction on harvesting capacity, and efforts to assess capacity have not incorporated how capacity would vary with reductions in undesirable outputs.Without proper attention to the relationship between reducing undesirable outputs and the maximizing desirable outputs, it is quite likely that the estimates of capacity used to help develop capacity reduction programs may be subject to error.We examine four approaches for estimating and assessing both capacity and technical efficiency of production activities that involve the production of both desirable and undesirable outputs. Although we primarily focus on estimating capacity while explicitly recognizing the need to allow desirable outputs to expand and undesirable outputs to contract, we also consider several other options for changing the direction (expansion and contraction) of desirable and undesirable outputs.All four methods considered in the report are based on data envelopment analysis ( DEA), which is a mathematical programming approach for estimating technical efficiency (TE) and capacity output. We first examine the more traditional DEA approach for estimating capacity; this is an output-oriented approach, which only takes desirable outputs into account and ignores undesirable outputs. We then introduce and summarize (2) a directional distance function approach, which permits desirable outputs to increase and undesirable outputs to decrease by the same proportion. Next, (3) a hyperbolic approach is then presented and discussed; this approach allows desirable outputs to expand by a scalar and undesirable outputs to contract by the inverse of the scalar. Last, we present (4) iii the approach of Seiford and Zhu (2002), which is an output-oriented approach but allows desirable outputs to increase and undesirable outputs to decrease. We then apply the various models to a data sample from fis...

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Section: Concluding Assessment Of Methodsmentioning

confidence: 99%

Estimating Fishing Vessel Capacity: A Comparison of Nonparametric Frontier Approaches

Walden

Tomberlin

2010

Marine Resource Economics

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“…Färe and Grosskopf (2004) presented a directional function based DEA model to model undesirable outputs in environment performances evaluation problem. Vencheh et al (2005) developed a DEA-based model for efficiency evaluation incorporating undesirable inputs and undesirable outputs, simultaneously. For more details of related research results, one can refer to Zhou et al (2008a).…”

Section: Introductionmentioning

confidence: 99%

Resource and environment efficiency analysis of provinces in China: A DEA approach based on Shannon’s entropy

2010

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“…However, in some real applications, production process may also use undesirable inputs and generate undesirable outputs [69], like smoke pollution or waste [78,79]. Consequently, authors of [80,81] have stated that in that production process both desirable and undesirable factors may be presented within the models of DEA methodology.…”

Section: Description Of Non-radial Dea Modelmentioning

confidence: 99%

“…In [82], the control of changes in input/output levels of a given DMU with the presence of undesirable factors in order to preserve the efficiency index of a DMU was considered. In [79], a model in the framework of DEA for treating undesirable inputs and outputs was proposed. A method for treating both undesirable inputs and outputs simultaneously in non-radial DEA models was presented in [83].…”

Section: Description Of Non-radial Dea Modelmentioning

confidence: 99%

Application of Multicriteria Decision-Making Methods in Railway Engineering: A Case Study of Train Control Information Systems (TCIS)

Djordjević¹,

Krmac²

2018

Modern Railway Engineering

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In order to improve its position in the transport market railway, as a complex system, it has to fulfill a number of objectives such as increased capacity and asset utilization, improved reliability and safety, higher customer service levels, better energy efficiency and fewer emissions, along with increased economic viability and profits. Some of these objectives call for the implementation of maximum values, while some of them require minimum values. Additionally, some can be expressed quantitatively, while some, for example, customer service, can be described qualitatively through a descriptive scale of points. The application of MCDM in railway engineering can play a significant role. Therefore, the major objective of this chapter is the review of the application of MCDM methods in railway engineering. As one of the means in achieving the objectives of railways and above all the utilization of capacity are Train Control Information Systems (TCIS). Based on that, the aim of this chapter is the evaluation of the efficiency of TCIS in the improvement of railway capacity utilization through defined technical-technological indicators. The non-radial Data Envelopment Analysis (DEA) model for the evaluation of TCIS efficiency in improvement of utilization of railway capacity using the selected indicators is proposed. The proposed non-radial DEA model for TCIS efficiency evaluation in using railway capacity could be applied to an overall network or for separate parts of railway lines.

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Undesirable factors in efficiency measurement

Cited by 60 publications

References 7 publications

Estimating Fishing Vessel Capacity: A Comparison of Nonparametric Frontier Approaches

Estimating Fishing Vessel Capacity: A Comparison of Nonparametric Frontier Approaches

Resource and environment efficiency analysis of provinces in China: A DEA approach based on Shannon’s entropy

Application of Multicriteria Decision-Making Methods in Railway Engineering: A Case Study of Train Control Information Systems (TCIS)

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