Duality of weakly disposable technology

摘要

This paper sheds new light on the economic interpretation of weak disposability by developing dual formulations of the weakly disposable DEA technology. It is found that the economic implications of weak disposability on the multiplier DEA problem are twofold: 1. The shadow prices of the undesirable outputs can be positive or negative, and 2. The economic loss of the benchmark cannot exceed the suck cost of the inputs. The second implication is interpreted as a limited liability condition. The dual formulations developed in this paper enable one to estimate shadow prices of the undesirable outputs using the weakly disposable technology. (37 refs.)