Including substitution of inputs in DEA models
Classic DEA models (e.g., CCR or super-efficiency DEA) assume that inputs are complementary and there is no substitution of inputs. The lack of substitution is a result of using the same input multiplier for all inputs. The author indicates that there is a possibility of including the substitution of inputs by using individual multiplier for each input. This is a characteristic of so-called non-radial DEA, which was proposed by Dyson and Thanassoulis (1992). The author presents some simple measures of substitution which are based on individual multipliers of inputs: substitution range, substitution index, substitution intensity. The substitution index describes what change of initial structure of inputs is needed to reach the optimal technology. The substitution intensity describes the velocity of necessary decrease of one input induced by an increase or not as fast as expected a decrease of the second input. Another characteristic of substitution is a substitution line the estimation of which is also proposed by the author.
Volume (Year): 3-4 (2007)
Issue (Month): ()
|Contact details of provider:|| Web page: http://www.ioz.pwr.wroc.pl/|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Thanassoulis, E. & Dyson, R. G., 1992. "Estimating preferred target input-output levels using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 56(1), pages 80-97, January.
- Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
- Per Andersen & Niels Christian Petersen, 1993. "A Procedure for Ranking Efficient Units in Data Envelopment Analysis," Management Science, INFORMS, vol. 39(10), pages 1261-1264, October.
- Tone, Kaoru, 2001. "A slacks-based measure of efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 130(3), pages 498-509, May.
- R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
When requesting a correction, please mention this item's handle: RePEc:wut:journl:v:3-4:y:2007:p:71-92. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Piotr Wawrzynowski)
If references are entirely missing, you can add them using this form.