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Smoothing the frontier in the DEA models

Author

Listed:
  • Førsund, Finn

    (Dept. of Economics, University of Oslo)

  • Krivonozhko, Vladimir W

    (National University of Science and Technology «MISiS», Moscow, Russia)

  • Lychev, Andrey V.

    (National University of Science and Technology «MISiS», Moscow, Russia)

Abstract

Some inadequate results may appear in the DEA models as in any other mathematical model. In the DEA scientific literature several methods were proposed to deal with these difficulties. In our previous paper, we introduced the notion of terminal units. It was also substantiated that only terminal units form necessary and sufficient sets of units for smoothing the frontier. Moreover, some relationships were established between terminal units and other sets of units that were proposed for improving the frontier. In this paper we develop a general algorithm for smoothing the frontier. The construction of algorithm is based on the notion of terminal units. Our theoretical results are verified by computational results using real-life data sets and also confirmed by graphical examples.

Suggested Citation

  • Førsund, Finn & Krivonozhko, Vladimir W & Lychev, Andrey V., 2016. "Smoothing the frontier in the DEA models," Memorandum 11/2016, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2016_011
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    File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2016/memo-11-2016.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Data Envelopment Analysis (DEA; Terminal units; Anchor units; Exterior units;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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