Enumeration algorithms for FDH directional distance functions under different returns to scale assumptions

Kristiaan Kerstens (1, 2) , Ignace van de Woestyne (1)

1 Department of Economics
2 LEM - Lille économie management - UMR 9221

Computing directional distance functions for a free disposal hull (FDH) technology in general requires solving nonlinear mixed integer programs. Cherchye et al. (J Product Anal 15(3):201–215, 2001) provide an enumeration algorithm for the FDH directional distance function in case of a variable returns to scale technology. In this contribution, we provide fast enumeration algorithms for the FDH directional distance functions under constant, nonincreasing, and nondecreasing returns to scale assumptions. Consequently, enumeration algorithms are now available for all commonly used returns to scale assumptions.

Domaines: Sciences de l'Homme et Société; Economies et finances

Kristiaan Kerstens, Ignace van de Woestyne. Enumeration algorithms for FDH directional distance functions under different returns to scale assumptions. Annals of Operations Research, 2018, 271, pp.1067-1078. ⟨10.1007/s10479-018-2791-5⟩. ⟨hal-01733347⟩