Dynamic Decision Making, Distance Functions, and Productive Efficiency

2021 ◽  
pp. 93-136
Author(s):  
Elvira Silva ◽  
Spiro E. Stefanou ◽  
Alfons Oude Lansink
Keyword(s):  
Distance Function ◽  
Value Function ◽  
Building Blocks ◽  
Directional Distance Function ◽  
Distance Functions ◽  
Adjustment Cost ◽  
Technical Inefficiency ◽  
Optimal Current ◽  
Dual Relation ◽  
Cost Minimization Problem

This chapter discusses three concepts of the directional distance function in the presence of internal adjustment costs, designated as adjustment cost directional distance functions. These functions are the building blocks of technical inefficiency measures. Duality between an adjustment cost directional distance function and an indirect optimal value function allows the construction of economic measures of inefficiency. Duality is established between the adjustment cost directional input function and the optimal current value function of the intertemporal cost minimization problem. From this dual relation, a dynamic cost inefficiency measure is derived and decomposed into technical inefficiency and allocative inefficiency. Similarly, dynamic input-output measures of inefficiency are derived from the adjustment cost directional technology distance function and duality between this function and the current profit function.

scholarly journals Performance Ranking Method Based on Superefficiency with Directional Distance Function in DEA

2020 ◽  
Vol 2020 ◽  
pp. 1-7
Author(s):  
Jing Tang ◽  
Jianzhong Liu ◽  
Jianghua Chen ◽  
Fangqing Wei
Keyword(s):  
Data Envelopment Analysis ◽  
Distance Function ◽  
Directional Distance Function ◽  
Ranking Method ◽  
Distance Functions ◽  
Data Envelopment ◽  
Production Possibility ◽  
Recent Developments ◽  
Production Possibility Set ◽  
Performance Ranking

In data envelopment analysis (DEA) methodology, superefficiency models eliminate the DMU to be evaluated from the production possibility set (PPS) to investigate whether its performance is superefficient. However, the infeasibility has been found in the superefficiency models when variable return-to-scale (VRS) technology is assumed. In recent developments, directional distance functions (DDF) are introduced into VRS superefficiency models to address the infeasibility, and the obtained efficiency scores from the DDF-based VRS superefficiency measure are used to rank all DMUs. In this study, we discuss conditions on selecting some proper reference bundles for feasible DDF and suggest a new DDF-based VRS superefficiency measure, which is unit-invariant and does not need to specify additional parameters. Two example illustrations are evaluated to demonstrate the feasibility and usefulness of our proposed DDF-based VRS superefficiency ranking method.

scholarly journals Directional Distance Function Technical Efficiency of Chili Production in Thailand

2021 ◽  
Vol 13 (2) ◽  
pp. 741
Author(s):  
Wirat Krasachat ◽  
Suthathip Yaisawarng
Keyword(s):  
Distance Function ◽  
Rainy Season ◽  
Sample Selection ◽  
Agricultural Practices ◽  
Directional Distance Function ◽  
Dry Season ◽  
Small Samples ◽  
Function Technique ◽  
Security Problem ◽  
Gap Technology

To overcome the challenging food safety and security problem, in 2003, the Thai government initiated ‘Good Agricultural Practices’ (GAP) technology. This paper used a sample of 107 small chili farms from the Chiyaphoom province for the 2012 crop year, and data envelopment analysis (DEA) meta-frontier directional distance function technique to answer two questions: (1) Are GAP-adopting farms, on average, more efficient than conventional farms? (2) Does access to GAP technology affect farmers’ decisions to adopt GAP technology? We also developed an ‘indirect’ approach to reduce the potential sample selection bias for small samples. For the dry-season subsample, GAP farms were more technically efficient when compared with non-GAP farms. These dry-season non-GAP farms may not adopt the GAP method because they have limited access to GAP technology. For the rainy-season subsample, on average, GAP farms were more efficient than non-GAP farms at the 5% level. Access to the GAP technology is not a possible reason for non-GAP rainy season farms to not adopt the GAP technology. To enable sustainable development, government agencies and nongovernmental organizations (NGOs) must develop and implement appropriate educational and training workshops to promote and assist GAP technology adoption for chili farms in Thailand.

scholarly journals KHINTCHINE'S THEOREM AND TRANSFERENCE PRINCIPLE FOR STAR BODIES

2006 ◽  
Vol 02 (03) ◽  
pp. 431-453
Author(s):  
M. M. DODSON ◽  
S. KRISTENSEN
Keyword(s):  
Distance Function ◽  
Diophantine Approximation ◽  
Direct Proof ◽  
Distance Functions ◽  
Transference Principle ◽  
Simultaneous Diophantine Approximation ◽  
Star Bodies

Analogues of Khintchine's Theorem in simultaneous Diophantine approximation in the plane are proved with the classical height replaced by fairly general planar distance functions or equivalently star bodies. Khintchine's transference principle is discussed for distance functions and a direct proof for the multiplicative version is given. A transference principle is also established for a different distance function.

Examining the relationship between farm size and productive efficiency: a Bayesian directional distance function approach

2019 ◽  
Vol 50 (2) ◽  
pp. 237-246 ◽  
Author(s):  
Robertson R.B. Khataza ◽  
Atakelty Hailu ◽  
Graeme J. Doole ◽  
Marit E. Kragt ◽  
Arega D. Alene
Keyword(s):  
Distance Function ◽  
Directional Distance Function ◽  
Productive Efficiency ◽  
Function Approach ◽  
Farm Size ◽  
The Relationship
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