Closest targets in Russell graph measure of strongly monotonic efficiency for an extended facet production possibility set

Abstract

This study modifies the Russell graph measure of efficiency to find the closest target from the assessed decision-making unit to the efficient frontier of an empirical production possibility set using an extended facet approach. The closest target requires a single improvement in either an output term or an input term, and needs some positive levels of all inputs to achieve the output target. The practical advantage of the proposed efficiency measure is demonstrated numerically in comparison to other existing non-radial efficiency measures.

27 pages, 2 figures