Estimating non-convex production sets using transconcave DEA

In this paper, we present Data Envelopment Analysis models for estimating non-convex production sets. In contrast to the Banker et al. (Banker, R.D., Charnes, A. and Cooper, W.W., 1984. Management Science 30 (9), 1078�1092) model, these models give statistically consistent estimators for production sets that are non-convex, but do have convex input sets and/or convex output sets, as is typically assumed in micro-economic theory. In addition, these models suffer less from a finite sample error than the Free Disposable Hull (Deprins, D., Simar, L., Tulkens, H., 1984. In: Marchand, M., Pestieu, P., Tulkens, H. (Eds.), The Performance of Public Enterprises. North-Holland, Amsterdam, pp. 243�267) model.

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