Decomposing profit inefficiency in DEA through the weighted additive model

An issue that has received little attention in the Data Envelopment Analysis literature is the decomposition of profit inefficiency by means of measures that account all sources of technical inefficiency. In this paper we introduce a new way to measure and decompose profit inefficiency through weighted additive models. All our results are derived from a new Fenchel–Mahler inequality using duality theory.