Comment on some mathematical properties of a DEA model for the joint determination of efficiencies

Comment on some mathematical properties of a DEA model for the joint determination of efficiencies

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Article ID: iaor201529867
Volume: 66
Issue: 12
Start Page Number: 1960
End Page Number: 1966
Publication Date: Dec 2015
Journal: Journal of the Operational Research Society
Authors: , ,
Keywords: statistics: data envelopment analysis, production, supply & supply chains
Abstract:

Molinero and Tsai (1997) proposed a data envelopment analysis (DEA) model to evaluate a production entity that is characterized by shared inputs and shared outputs. They claimed that their proposed model has a convex solution space, and thus a convex program. This conclusion, if it were correct, should be applicable potentially not only to the model given by the authors, but also arguably to all the researches concerning shared inputs and/or shared outputs in the literature. Because of its potential influence, we show that the conclusion is not correct and the significance of the incorrectness without reducing the interestingness of their work, as the establishment of Kuhn‐Tucker condition is interesting by itself.

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