Super‐efficiency DEA in the presence of infeasibility

Super‐efficiency DEA in the presence of infeasibility

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Article ID: iaor20113904
Volume: 212
Issue: 1
Start Page Number: 141
End Page Number: 147
Publication Date: Jul 2011
Journal: European Journal of Operational Research
Authors: , ,
Keywords: inefficiency
Abstract:

It is well known that super‐efficiency data envelopment analysis (DEA) approach can be infeasible under the condition of variable returns to scale (VRS). By extending of the work of , the current study develops a two‐stage process for calculating super‐efficiency scores regardless whether the standard VRS super‐efficiency mode is feasible or not. The proposed approach examines whether the standard VRS super‐efficiency DEA model is infeasible. When the model is feasible, our approach yields super‐efficiency scores that are identical to those arising from the original model. For efficient DMUs that are infeasible under the super‐efficiency model, our approach yields super‐efficiency scores that characterize input savings and/or output surpluses. The current study also shows that infeasibility may imply that an efficient DMU does not exhibit super‐efficiency in inputs or outputs. When infeasibility occurs, it can be necessary that (i) both inputs and outputs be decreased to reach the frontier formed by the remaining DMUs under the input‐orientation and (ii) both inputs and outputs be increased to reach the frontier formed by the remaining DMUs under the output‐orientation. The newly developed approach is illustrated with numerical examples.

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