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Negative data in DEA: a simple proportional distance function approach

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  • K. Kerstens

    (LEM - Lille - Economie et Management - Université de Lille, Sciences et Technologies - CNRS - Centre National de la Recherche Scientifique)

  • I. van de Woyestyne

Abstract

The need to adapt Data Development Analysis (DEA) and other frontier models in the context of negative data has been a rather neglected issue in the literature. Silva Portela, Thanassoulis, and Simpson (2004) proposed a variation on the directional distance function, a very general distance function that is dual to the profit function, to accomodate eventual negative data. In this contribution, we suggest a simple varaiation on the proportional distance funtion that can do the same job.
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Suggested Citation

  • K. Kerstens & I. van de Woyestyne, 2011. "Negative data in DEA: a simple proportional distance function approach," Post-Print halshs-00585619, HAL.
    • Handle: RePEc:hal:journl:halshs-00585619
    DOI: 10.1057/jors.2010.108
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