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An enhanced BAM for unbounded or partially bounded CRS additive models

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  • Pastor, Jesus T.
  • Aparicio, Juan
  • Alcaraz, Javier
  • Vidal, Fernando
  • Pastor, Diego

Abstract

The Bounded Adjusted Measure (BAM), initially defined for the additive model, which is a variable returns to scale (VRS) model, was extended to the constant returns to scale (CRS) case [7]. The added range-bounds, which maintain unaltered the production possibility set (PPS) under VRS, showed an influential effect under CRS, reducing the corresponding PPS, as well as a negative effect, excluding some of the original CRS projections. Here we propose an enhanced extension that, by considering a different set of less restrictive bounds, eliminates the negative effect. Moreover, we customize this new extension for the family of partially bounded CRS additive models, i.e., models where at least one variable is naturally bounded from below, if it is an input, or from above, if it is an output.

Suggested Citation

  • Pastor, Jesus T. & Aparicio, Juan & Alcaraz, Javier & Vidal, Fernando & Pastor, Diego, 2015. "An enhanced BAM for unbounded or partially bounded CRS additive models," Omega, Elsevier, vol. 56(C), pages 16-24.
    • Handle: RePEc:eee:jomega:v:56:y:2015:i:c:p:16-24
    DOI: 10.1016/j.omega.2015.02.009
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    7. Podinovski, Victor V. & Bouzdine-Chameeva, Tatiana, 2019. "Cone extensions of polyhedral production technologies," European Journal of Operational Research, Elsevier, vol. 276(2), pages 736-743.
    8. Ole Bent Olesen & Niels Christian Petersen & Victor V. Podinovski, 2022. "Scale characteristics of variable returns-to-scale production technologies with ratio inputs and outputs," Annals of Operations Research, Springer, vol. 318(1), pages 383-423, November.
    9. Juan Du & Jiazhen Huo & Joe Zhu, 2016. "Data Envelopment Analysis with Output-Bounded Data," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 33(06), pages 1-17, December.

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