This paper proposes a new method to measure economic inefficiency of decision making units based on the calculation of the least distance to the Pareto-efficient frontier in Data Envelopment Analysis (DEA). While all previously published approaches that have dealt with the problem of determining...

Chapter 1: Introduction -- Chapter 2: Conceptual background: firms’ objectives, decision variables and economic efficiency -- Part I -- Chapter 3: Shephard’s input and output distance functions: cost and revenue efficiency decompositions -- Chapter 4: The generalized distance function (GDF):...