Non-convex Value Efficiency Analysis

Value Efficiency Analysis and FDH
  • Tarja Joro
  • Pekka J. Korhonen
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 218)


As we have discussed and demonstrated in Chaps.  7 9, the value efficiency analysis can be applied to input-, output-, and combined-oriented models. It is also applicable to various returns to scale assumptions (CRS, VRS, NIRS, and NDRS). However, the convex property of a production possibility set is required. Unfortunately, the extension to non-convex PPS is not straightforward. Not only the extension is theoretically interesting, it has an important practical meaning in some situations.


Efficiency Score Convex Cone Efficiency Analysis Efficient Frontier Tangent Cone 
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Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  • Tarja Joro
    • 1
  • Pekka J. Korhonen
    • 2
  1. 1.Department of Accounting, Operations and Information Systems Alberta School of BusinessUniversity of AlbertaEdmontonCanada
  2. 2.Department of Information and Service Economy School of BusinessAalto UniversityHelsinkiFinland

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