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A distance friction minimization approach in data envelopment analysis: A comparative study on airport efficiency
Authors:Soushi Suzuki  Peter Nijkamp  Piet Rietveld  Eric Pels
Institution:1. Hokkai-Gakuen University, Department of Civil and Environmental Engineering, 1-1, South 26 West11, Chuo-ku, 064-0926 Sapporo, Japan;2. VU University Amsterdam, Department of Spatial Economics, De Boelelaan 1105, 1081 HV Amsterdam, The Netherlands
Abstract:This paper aims to present a newly developed distance friction minimization (DFM) method in the context of data envelopment analysis (DEA) in order to generate an appropriate (non-radial) efficiency-improving projection model, for both input reduction and output increase. In this approach, a generalized distance function, based on a Euclidean distance metric in weighted spaces, is proposed to assist a decision making unit (DMU) to improve its performance by an appropriate movement towards the efficiency frontier surface. A suitable form of multidimensional projection function for efficiency improvement is given by a Multiple Objective Quadratic Programming (MOQP) model. The paper describes the various steps involved in a systematic manner.
Keywords:Distance friction minimization (DFM) method  Data envelopment analysis (DEA)  Multiple Objective Quadratic Programming (MOQP)  Efficiency improving projection  Airport efficiency
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