MODELING UNDESIRABLE FACTORS IN EFFICIENCY MEASUREMENT USING DATA ENVELOPMENT ANALYSIS: A REVIEW

Abstract

This paper presents a review on the development ofefficiency measurement approaches incorporating undesirable outputs in the Data EnvelopmentAnalysis (DEA) framework. The review is based on the literature analysis in DEAwith the classification ofthe literature in two orientations -amethodological orientationand an empiricalorientation. Forthe 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.