Main Article Content

Abstract

Super-efficiency model in the presence of negative data is a relatively neglected issue in the DEA field. The existing super-efficiency models have some shortcoming in practice. In this paper, the radial super-efficiency model based on Directional Distance Function (DDF) is modified to provide a complete ranking order of the DMUs (including efficient and inefficient DMUs). This model shows more reliability on differentiating efficient DMUs from inefficient ones via a new super-efficiency measure. The properties of proposed model include feasibility, monotonicity and unit invariance. Moreover, the model can produce positive outputs when data are non-negative. An empirical study in bank sector demonstrates the superiority of the proposed model.

Article Details

Author Biographies

Elnaz Babazadeh, Azarbaijan Shahid Madani University

Department of Mathematics

Jafar Pourmahmoud, Azarbaijan Shahid Madani University

Department of Mathematics
How to Cite
Babazadeh, E., & Pourmahmoud, J. (2018). A modified DDF-based super-efficiency model handling negative data. Pakistan Journal of Statistics and Operation Research, 14(3), 501-521. https://doi.org/10.18187/pjsor.v14i3.2185