Estimation of Congestion in Free Disposal Hull Models Using Data Envelopment Analysis.

This paper deals with evaluating congestion in free disposal hull (FDH) models. There are several approaches in data envelopment analysis (DEA) literatures which discuss the theory and application oi congestion. However, almost all oi these approaches considered convex DEA technologies. So, in the case of nonconvex technologies, including FDH technology, this field is almost nil. This paper makes an attempt to fill in this void. To do so, this study provides a pairwise comparisons-based algorithm to evaluate congestion in FDH model. This algorithm identifies the sources of congestion and estimates its amounts. It is also capable of detecting the losses amounts of output dueto congestion. The validity of the proposed model is demonstrated using some numerical and empirical examples. [ABSTRACT FROM AUTHOR]