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Negative Data in DEA: A Simple Proportional Distance Function Approach

Author

Listed:
  • Kristiaan Kerstens

    (CNRS-LEM (UMR 8179), IESEG School of Management)

  • Ignace Van de Woestyne

    (Hogeschool Universiteit Brussel, Brussels, Belgium)

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.

Suggested Citation

  • Kristiaan Kerstens & Ignace Van de Woestyne, 2009. "Negative Data in DEA: A Simple Proportional Distance Function Approach," Working Papers 2009-ECO-03, IESEG School of Management.
    • Handle: RePEc:ies:wpaper:e200903
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    Keywords

    DEA; negative data; directional distance funtion;
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