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Sustainability 2014, 6(12), 8808-8826; doi:10.3390/su6128808

Distinguishing Technical Inefficiency from Desirable and Undesirable Congestion with an Application to Regional Industries in China

School of Management, University of Science and Technology of China, Hefei 230026, China
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Received: 11 September 2014 / Revised: 3 November 2014 / Accepted: 19 November 2014 / Published: 2 December 2014
(This article belongs to the Special Issue Challenges for Marketers in Sustainable Production and Consumption)
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Abstract

Congestion is an important issue that requires the efficiency of decision-making units (DMUs). We first classify conventional congestion into congestion (newly defined) and technical inefficiency, based on prior research and real applications. Modified definitions and mathematical expression of congestion, managerial inefficiency, and technical inefficiency are proposed to better illustrate the differences between them. Several modified models are provided to identify and recognize those types of inefficiencies and congestion. We then extend the model by considering the desirable and undesirable types of congestion simultaneously. The proposed approach is applied and verified by identifying resource congestion and environmental inefficiencies in China’s economic development. View Full-Text
Keywords: data envelopment analysis; technical inefficiency; managerial inefficiency; desirable and undesirable congestion data envelopment analysis; technical inefficiency; managerial inefficiency; desirable and undesirable congestion
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Wang, J.; Zha, Y. Distinguishing Technical Inefficiency from Desirable and Undesirable Congestion with an Application to Regional Industries in China. Sustainability 2014, 6, 8808-8826.

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