Estimating non-convex production sets – imposing convex input sets and output sets in data envelopment analysis

In this paper, we present Data Envelopment Analysis models for estimating non-convex production sets. In contrast to the Banker et al. 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.