The DDFefficiency.lng Model

Computing efficiency of Decision Making Units

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Computing efficiency of Decision Making Units (DMU), using
Directional Distance Function.

Ref:
Chambers, R., Y. Chung, and R. Fare (1996), "Benefit and Distance Functions",
Journal of Economic Theory, vol. 70, pp. 407-419.

For each DMU, we are given:

How much it used of each input,

How much it delivered of each output.

All DMU's use the same types of inputs and
deliver the same types of outputs.

A DMU i is efficient or undominated if there no positively weighted
combination of other DMU's that

uses no more of every input, and

delivers at least as much of every output.

A "Beta" score is computed for each DMU i which is

<= 0 if DMU i is efficient or undominated,

> 0 if DMY i is inefficient or dominated.

Keywords:

Benchmarking | DEA | Efficiency | Pareto Optimal | DDF | Directional Distance Function |