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Negative Data in DEA: A Simple Proportional Distance Function Approach

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  • Kerstens, Kristiaan

    (IESEG School of Management, Lille, France)

  • Van de Woestyne, Ignace

    (Hogeschool-Universiteit Brussel (HUB), Belgium)

Abstract

The need to adapt Data Envelopment 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 accommodate eventual negative data. In this contribution, we suggest a simple variation on the proportional distance function that can do the same job.

Suggested Citation

  • Kerstens, Kristiaan & Van de Woestyne, Ignace, 2009. "Negative Data in DEA: A Simple Proportional Distance Function Approach," Working Papers 2009/04, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
    • Handle: RePEc:hub:wpecon:200904
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    References listed on IDEAS

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