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|
|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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