This article extends a nonradial directional distance function (DDF) to allow decision-making units to adjust inputs in two directions. Based on this nonradial DDF, we evaluate the regional industrial unified efficiency (operational efficiency and environmental efficiency) in China between 2005 and 2014. We find that East China has the highest industrial unified efficiency score, followed by the West and Central China. To avoid methodological biases, three other models are also applied to assess the unified efficiency. The results indicate that a nonradial DDF under natural and managerial disposability (our model) has a greater discriminating power than a nonradial DDF under either of the disposabilities and the radial DDF.
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Natl Res Council Italy, Inst Econ Res Firms & Growth CNR Ceris, I-10024 Moncalieri, TO, ItalyNatl Res Council Italy, Inst Econ Res Firms & Growth CNR Ceris, I-10024 Moncalieri, TO, Italy
Falavigna, Greta
Ippoliti, Roberto
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Prime Ministers Off, Council Ministers, Italian Natl Sch Adm, I-00135 Rome, ItalyNatl Res Council Italy, Inst Econ Res Firms & Growth CNR Ceris, I-10024 Moncalieri, TO, Italy
Ippoliti, Roberto
Manello, Alessandro
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Natl Res Council Italy, Inst Econ Res Firms & Growth CNR Ceris, I-10024 Moncalieri, TO, ItalyNatl Res Council Italy, Inst Econ Res Firms & Growth CNR Ceris, I-10024 Moncalieri, TO, Italy
Manello, Alessandro
Ramello, Giovanni B.
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Univ Piemonte Orientale, Inst Publ Policy & Collect Choices POLIS, I-15121 Alessandria, AL, ItalyNatl Res Council Italy, Inst Econ Res Firms & Growth CNR Ceris, I-10024 Moncalieri, TO, Italy