CCR-DP model with dominated inflation function of inputs
In standard input-oriented DEA it is assumed that the marginal productivity of inputs is constant. The efficiency changes can be achieved by proportional changes of all inputs. The author of the article considers decreasing marginal productivity of inputs and presents the appropriate modification of DEA models. The modification consists in adding the individual scale multipliers of inputs and individual scale multipliers of results. The author considers a function called dominated inflation function of inputs. It describes the input multipliers as an increasing convex function of by multipliers of results. Two examples of inflation function are suggested: linear-exponential and linear-power function. The appropriate efficiency rate is also presented. Numerical example includes a detailed analysis of efficiency changes.
Volume (Year): 4 (2008)
Issue (Month): ()
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