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Constructions of economic functions and calculations of marginal rates in DEA using parametric optimization methods

Author

Listed:
  • V E Krivonozhko

    (Institute for Systems Analysis)

  • O B Utkin

    (Corp. GRUPPA)

  • A V Volodin

    (Global S. Consulting Company)

  • I A Sablin

    (Global S. Consulting Company)

  • M Patrin

    (Institute for Systems Analysis)

Abstract

The aim of the paper is to present and substantiate a technique to visualize DEA modelling 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.

Suggested Citation

  • V E Krivonozhko & O B Utkin & A V Volodin & I A Sablin & M Patrin, 2004. "Constructions of economic functions and calculations of marginal rates in DEA using parametric optimization methods," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(10), pages 1049-1058, October.
    • Handle: RePEc:pal:jorsoc:v:55:y:2004:i:10:d:10.1057_palgrave.jors.2601759
    DOI: 10.1057/palgrave.jors.2601759
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    References listed on IDEAS

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    Keywords

    DEA; parametric optimization algorithms;

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