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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.
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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