Estimation of Congestion in Free Disposal Hull Models Using Data Envelopment Analysis

This paper deals with evaluating congestion in free disposal hull (FDH) models. There are several approaches in data envelopment analysis (DEA) literatures which discuss the theory and application of congestion. However, almost all of these approaches considered convex DEA technologies. So, in the c...

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Bibliographic Details
Main Authors: M. Abbasi, G. R. Jahanshahloo, M. Rostamy-Malkhlifeh, F. Hosseinzadeh Lotfi
Format: Article
Language:English
Published: Wiley 2014-01-01
Series:The Scientific World Journal
Online Access:http://dx.doi.org/10.1155/2014/427673
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Summary:This paper deals with evaluating congestion in free disposal hull (FDH) models. There are several approaches in data envelopment analysis (DEA) literatures which discuss the theory and application of congestion. However, almost all of these approaches considered convex DEA technologies. So, in the case of nonconvex technologies, including FDH technology, this field is almost nil. This paper makes an attempt to fill in this void. To do so, this study provides a pairwise comparisons-based algorithm to evaluate congestion in FDH model. This algorithm identifies the sources of congestion and estimates its amounts. It is also capable of detecting the losses amounts of output due to congestion. The validity of the proposed model is demonstrated using some numerical and empirical examples.
ISSN:2356-6140
1537-744X