A Note on Imposing Strong Complementary Slackness Conditions in DEA
A new DEA model has been introduced recently combining the primal and the dual models in order to impose strong complementary slackness conditions. It was claimed that a reference set that contains the maximum number of efficient units can then be determined. The model is very interesting as a theoretical idea. However, not only does the computational burden increase significantly, but it seems also that the basic matrices may be inherently ill-conditioned, leading to wrong results. Numerical experiments have been carried out on two real datasets of medium size with 163 and 920 units. These experiments show pervasive existence of ill-conditioned matrices leading to obviously wrong estimates of efficiency scores, and units declared as efficient reference units while actually being inefficient.
|Date of creation:||03 Jan 2011|
|Date of revision:|
|Publication status:||Published as Krivonozhko, Vladimir, Finn R. Førsund and Andrey V. Lychev, 'A Note on Imposing Strong Complementary Slackness Conditions in DEA' in european journal of operational research, 2012, pages 716-721.|
|Contact details of provider:|| Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway|
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- Sueyoshi, Toshiyuki & Sekitani, Kazuyuki, 2007. "Measurement of returns to scale using a non-radial DEA model: A range-adjusted measure approach," European Journal of Operational Research, Elsevier, vol. 176(3), pages 1918-1946, February.
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"Returns-to-scale properties in DEA models: the fundamental role of interior points,"
Journal of Productivity Analysis,
Springer, vol. 38(2), pages 121-130, October.
- Krivonozhko, Vladimir & Førsund, Finn R., 2009. "Returms-to-scale Properties in DEA Models: The Fundamental Role of Interior Points," Memorandum 15/2009, Oslo University, Department of Economics.
- 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.
- Sueyoshi, Toshiyuki & Goto, Mika, 2010. "Measurement of a linkage among environmental, operational, and financial performance in Japanese manufacturing firms: A use of Data Envelopment Analysis with strong complementary slackness condition," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1742-1753, December.
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