data envelopment analysis (dea) with considering the best condition for each decision making unit (dmu) assesses the relative efficiency for it and divides a homogenous group of dmus in to two categories: efficient and inefficient, but traditional dea models can not rank efficient dmus. although some models were introduced for ranking efficient dmus, franklin lio & hsuan peng (2008), proposed a...

Data envelopment analysis (DEA) with considering the best condition for each decision making unit (DMU) assesses the relative efficiency for it and divides a homogenous group of DMUs in to two categories: efficient and inefficient, but traditional DEA models can not rank efficient DMUs. Although some models were introduced for ranking efficient DMUs, Franklin Lio & Hsuan peng (2008), proposed a...

In applications of linear programming, shadow prices/costs are as important as the optimal values of decision variables and objective function. When the linear programming problems are primal degenerate, the shadow prices are no longer necessarily equal to optimal value of dual variables. In such cases, the socalled two-sided shadow prices are defined. However, existing approaches for two-sided...

We use the linear programming approach to examine the overall macroeconomic performance and compute shadow prices of SO2 emission abatements for thirty regions in China during the 1996-2002 period. Our major findings are as follows: On average, the east is the most efficient and the west is the most inefficient during these seven years. The average efficiency of those regions with serious acid ...

Subsistence farmers may not respond to market incentives if their resource allocation decisions are based on shadow prices. This may lead to “puzzling” results from an economic point of view if shadow prices are not taken into account. Subsistence maize farmers in rural Mexico are an example with their non-response to decreasing maize prices after NAFTA. I analyze the true value measure of maiz...

The paper estimates the shadow prices of SO2 emissions for 36 Czech industry sectors during the period 2000-2008. A convex nonparametric least squares quadratic optimization formulated by Mekaroonreung & Johnson (2012) is applied to measure technical efficiency and to jointly estimate the shadow prices of SO2 emissions. The weighted average shadow price ranges between 360€ and 1,316€ per ton of...

In resource accounting, shadow prices of natural resources and environmental effects should be used as the social marginal value of goods. Since it is difficult to measure shadow prices in practice, market prices are often used as proxies for shadow prices. A prerequisite for the use of these proxies is that there is an established relationship between size of the natural resource stock of inte...

China is experiencing from serious water issues. There are many differences among the Nine Major Rivers basins of China in the construction of dikes, reservoirs, floodgates, flood discharge projects, flood diversion projects, water ecological construction, water conservancy management, etc. The shadow prices of water resources for Nine Major Rivers can provide suggestions to the Chinese governm...

For portfolio choice problems with proportional transaction costs, we discuss whether or not there exists a shadow price, i.e., a least favorable frictionless market extension leading to the same optimal strategy and utility. By means of an explicit counter-example, we show that shadow prices may fail to exist even in seemingly perfectly benign situations, i.e., for a log-investor trading in an...