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Integer-Valued DEA with Undesirable Outputs: An Axiomatic Approach in Productivity Analysis

This paper presents an innovative axiomatic approach to address undesirable outputs in productivity analysis, specifically for integer-valued data. It introduces the concept of "natural weak disposability" and proposes a minimal extrapolation production set. Additionally, a Mixed Integer Linear Programming (MILP) model is utilized for efficiency evaluation. To demonstrate the model's applicability, an empirical study is conducted on Iranian university departments, showcasing its effectiveness in real-world scenarios.

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Integer-Valued DEA with Undesirable Outputs: An Axiomatic Approach in Productivity Analysis

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  1. Available online at www.ijo.ir Iranian Journal of Optimization 3(2011) 197- 205 Iranian Journal of Optimization Integer-Valued DEA with Undesirable Outputs: An Axiomatic Approach with an Empirical Application Reza Kazemi Matin* Department of Mathematics, Islamic Azad University, Karaj Branch Abstract Recently several approaches have been introduced for dealing with undesirable outputs in productivity analysis. This paper intends to introduce an axiomatic approach to give an extension for the case of integer-valued data. Our development is based on introducing new notion of ``natural weak disposability". The minimal extrapolation production set is introduced and an MILP model is used for efficiency evaluation. An empirical application to Iranian university departments is also used to illustrate the model. Keywords: Data Envelopment Analysis (DEA), Production Theory, Undesirable Outputs, Mixed integer Linear Programming (MILP). * Corresponding author: E-Mail: rkmatin@kiau.ac.ir

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