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Slack free MEA and RDM with comprehensive efficiency measures
Authors:Mette Asmild  Jesús T Pastor
Institution:1. Warwick Business School, University of Warwick, Coventry CV4 7AL, UK;2. CiO, Universidad Miguel Hernández de Elche, Spain
Abstract:This paper extends two directional distance function models, the Multi-directional Efficiency Analysis (MEA) Model and the Range Directional Model (RDM), in order to account for any type of technical inefficiency, i.e. both directional and non-directional inefficiencies. We first focus on the variable returns to scale (VRS) case, because both VRS-MEA and RDM are translation invariant models, which mean that both models are able to deal with negative data. Our main result is the definition of a new comprehensive efficiency measure which is units invariant and translation invariant and covers both models. Secondly, we introduce the RDM model under constant returns to scale (CRS) together with a new comprehensive efficiency measure.
Keywords:Efficiency analysis  Slack free models  Comprehensive efficiency measures  DEA  Directional distance functions  MEA  RDM
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