Estimating Capacity Utilization in Network DEA in the Presence of Undesirable Outputs

There are two typical subprocesses in bank production—deposit generation and loan generation. Aiming to open the black box of input-output production of banks and provide comprehensive and accurate assessment on the efficiency of each stage, this paper proposes a two-stage network model with bad outputs and supper efficiency (US-NSBM). Empirical comparisons show that the US-NSBM may be promising and practical for taking the nonperforming loans into account and being able to rank all samples. Applying it to measure the efficiency of Chinese commercial banks from 2008 to 2012, this paper explores the characteristics of overall and divisional efficiency, as well as the determinants of them. Some interesting results are discovered. The polarization of efficiency occurs in the bank level and deposit generation, yet does not in the loan generation. Five hypotheses work as expected in the bank level, but not all of them are supported in the stage level. Our results extend and complement some earlier empirical publications in the bank level.

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Assessing the sustainability of high-, middle-, and low-income countries: A network DEA model in the presence of both zero data and undesirable outputs

Sustainable Production and Consumption ◽

10.1016/j.spc.2019.08.009 ◽

2020 ◽

Vol 21 ◽

pp. 252-268 ◽

Cited By ~ 3

Author(s):

Ali Sarkhosh-Sara ◽

Mohammad Tavassoli ◽

Almas Heshmati

Keyword(s):

Low Income ◽

Low Income Countries ◽

Undesirable Outputs ◽

Network Dea ◽

Dea Model

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Performance evaluation of general network production processes with undesirable outputs: A DEA approach

RAIRO - Operations Research ◽

10.1051/ro/2017022 ◽

2018 ◽

Vol 52 (1) ◽

pp. 17-34 ◽

Cited By ~ 1

Author(s):

Amir Kalhor ◽

Reza Kazemi Matin

Keyword(s):

Performance Evaluation ◽

Production Systems ◽

Data Envelopment ◽

Undesirable Outputs ◽

Network Dea ◽

Production Processes ◽

Real World Applications ◽

Dea Models ◽

General Network ◽

Literature Production

Performance evaluation of production systems with network structure has been widely studied in recent data envelopment analysis (DEA) literature. Production systems in which outputs of some stages are consumed as the inputs of some other stages in producing final outputs. In real world applications, production processes are often complex and may produce not only desirable but also undesirable intermediate or final outputs. In this paper modelling a general network DEA is considered in the presence of undesirable outputs. A weak disposable production set consistent with undesirable outputs is introduced and some network DEA models are also proposed for performance evaluation of the production units. The proposed method is illustrated by some numerical example, including an empirical application.

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Relative Efficiency of Decision Making Units Producing Both Desirable and Undesirable Outputs: A Case of Textile Processing Units in Pakistan.

The Pakistan Development Review ◽

10.30541/v50i4iipp.685-698 ◽

2011 ◽

Vol 50 (4II) ◽

pp. 685-698

Author(s):

Samina Khalil

Keyword(s):

Decision Making ◽

Data Envelopment Analysis ◽

Relative Efficiency ◽

Value Added ◽

Data Envelopment ◽

Undesirable Outputs ◽

Textile Processing ◽

Decision Making Unit ◽

Desirable And Undesirable Outputs ◽

Decision Making Units

This paper aims at measuring the relative efficiency of the most polluting industry in terms of water pollution in Pakistan. The textile processing is country‘s leading sub sector in textile manufacturing with regard to value added production, export, employment, and foreign exchange earnings. The data envelopment analysis technique is employed to estimate the relative efficiency of decision making units that uses several inputs to produce desirable and undesirable outputs. The efficiency scores of all manufacturing units exhibit the environmental consciousness of few producers is which may be due to state regulations to control pollution but overall the situation is far from satisfactory. Effective measures and instruments are still needed to check the rising pollution levels in water resources discharged by textile processing industry of the country. JEL classification: L67, Q53 Keywords: Data Envelopment Analysis (DEA), Decision Making Unit (DMU), Relative Efficiency, Undesirable Output

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