Modeling undesirable factors in efficiency measurement using data envelopment analysis: A review

This paper presents a review on the development of efficiency measurement approaches incorporating undesirable outputs in the Data Envelopment Analysis (DEA) framework. The review is based on the literature analysis in DEA with the classification of the literature in two orientations - a methodological orientation and an empirical orientation. For the methodological orientation, two categories of direct and indirect approaches have been discussed extensively. As for the empirical orientation, the discussion brings up some empirical studies relating to environmental efficiency measurement.

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