Distance Functions in Some Class of Infinite Dimensional Vector Spaces

Abstract

This paper considers the problem of measuring technical efficiency in some class of normed vector spaces. Specifically, the paper focuses on preordered and partially ordered vector spaces by proposing a suitable encompassing netput formulation of the production possibility set. Duality theorems extending some earlier results are established in the context of infinite dimensional spaces. The paper considers directional and normed distance functions and analyzes their relationships. Among other things, overall efficiency can be derived from technical efficiency under a suitable preordered vector space structure. More importantly, it is shown that the existence of core points in partially ordered vector spaces guarantees the comparison of production vectors using the directional distance function. Although the interior of the positive cone may be empty in infinite dimensional vector spaces, it is shown that normed distance functions can also be used to measure efficiency in such spaces by providing them with a suitable preorder structure.