Constructions of economic functions and calculations of marginal rates in data envelopment analysis using parametric optimization methods

Constructions of economic functions and calculations of marginal rates in data envelopment analysis using parametric optimization methods

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Article ID: iaor20051184
Country: United Kingdom
Volume: 55
Issue: 10
Start Page Number: 1049
End Page Number: 1058
Publication Date: Oct 2004
Journal: Journal of the Operational Research Society
Authors: , , , ,
Abstract:

The aim of the paper is to present and substantiate a technique to visualize DEA modeling results without any loss of mathematical rigour. The proposed family of parametric optimization methods allows one to construct an intersection of the multidimensional frontier with a two-dimensional plane determined by any pair of given directions. This approach reduces the efficiency analysis of production units to the investigation of well-known functions in economics. We also propose constructive methods to calculate marginal rates of substitution, marginal rates of transformation and so on.

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