Computational Accuracy and Infinitesimals In Data Envelopment Analysis

Agha Iqbal Ali · Lawrence M. Seiford

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Efficiency Analysis Using DEA Multi-Criteria Decision Making Optimization and Mathematical Programming

Abstract

The role of the non-Archimedean construct ∈ in the CCR and BCC models is clarified. It is established that the associated dual linear programs can be infeasible (for the multiplier side) and unbounded (for the associated dual envelopment side program). Sufficient conditions are established for feasibility and boundedness. Computational testing indicates that improper selection of a value for e can result in serious errors. The importance of the results for DEA practitioners and the serious consequences of misclassification are discussed.

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References

1978Measuring the efficiency of decision making units 1984Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis 1990Translation invariance in data envelopment analysis 1989Using data envelopment analysis to evaluate efficiency in the economic performance of Chinese cities

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