In for-profit organizations, profit efficiency decomposition is considered important since estimates on profit drivers are of practical use to managers in their decision making. Profit efficiency is traditionally due to two sources – technical efficiency and allocative efficiency. The...

The nonparametric data envelopment analysis (DEA) literature on environmental efficiency (EE) considers handling undesirable outputs in two alternative ways: either in their original forms with the assumption that these are weakly disposable or in various translated forms with the assumption...

Based on the different models developed by Korhonen and Luptacik [Korhonen, P., Luptacik, M., 2004. Eco-efficiency analysis of power plants: An extension of data envelopment analysis. European Journal of Operational Research 154, 437–46], this contribution centers on the development of an...

Viewing slacks as one possible source of inefficiency, and that inputs have differential importance in the production process, this paper develops, based on the directional Russell measure of inefficiency, the non-radial Luenberger indicator. This indicator is then shown as the sum of the...

Two alternative estimation models, i.e., a translog cost function and data envelopment analysis (DEA) based on a cost model are compared and contrasted in revealing scale economies in the Indian commercial banking sector. The empirical results indicate that while the translog cost model exhibits...

Purpose – The purpose of this paper is to construct a robust macroeconomic performance (MEP) index of the State economies of an emerging market economy, i.e. India. Design/methodology/approach – Two variants of data envelopment analysis (DEA) models – radial and non-radial – are proposed...

For measuring technical efficiency relative to a log-linear technology, a generalized multiplicative directional distance function (GMDDF) is developed using the framework of multiplicative directional distance function (MDDF). Furthermore, a computational procedure is suggested for its...

The constant returns to scale assumption maintained by neoclassical theorists for justifying the black-box structure of production technology in long run does not necessarily allow one to infer that there are no scale benefits available in its sub-technologies. Most of real-life production...