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CCR-DP model with dominated inflation function of inputs

  • Boguslaw Guzik

    ()

    (Katedra Ekonometrii, Akademia Ekonomiczna, Poland)

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    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.

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    File URL: http://www.ioz.pwr.wroc.pl/boid/artykuly/4-2008/art-3-guzik.pdf
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    Article provided by Wroclaw University of Technology, Institute of Organization and Management in its journal Operations Research and Decisions.

    Volume (Year): 4 (2008)
    Issue (Month): ()
    Pages: 29-46

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    Handle: RePEc:wut:journl:v:4:y:2008:p:29-46
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    1. 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.
    2. 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.
    3. 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.
    4. Tofallis, C., 1996. "Improving discernment in DEA using profiling," Omega, Elsevier, vol. 24(3), pages 361-364, June.
    5. 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.
    6. 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.
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