Super-efficiency DEA in the presence of infeasibility

Hsuan-Shih Lee, Ching-Wu Chu and Joe Zhu

European Journal of Operational Research, 2011, vol. 212, issue 1, 141-147

Abstract: It is well known that super-efficiency data envelopment analysis (DEA) approach can be infeasible under the condition of variable returns to scale (VRS). By extending of the work of Chen (2005), the current study develops a two-stage process for calculating super-efficiency scores regardless whether the standard VRS super-efficiency mode is feasible or not. The proposed approach examines whether the standard VRS super-efficiency DEA model is infeasible. When the model is feasible, our approach yields super-efficiency scores that are identical to those arising from the original model. For efficient DMUs that are infeasible under the super-efficiency model, our approach yields super-efficiency scores that characterize input savings and/or output surpluses. The current study also shows that infeasibility may imply that an efficient DMU does not exhibit super-efficiency in inputs or outputs. When infeasibility occurs, it can be necessary that (i) both inputs and outputs be decreased to reach the frontier formed by the remaining DMUs under the input-orientation and (ii) both inputs and outputs be increased to reach the frontier formed by the remaining DMUs under the output-orientation. The newly developed approach is illustrated with numerical examples.

Keywords: Data; envelopment; analysis; (DEA); Infeasibility; Super-efficiency (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (47)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:212:y:2011:i:1:p:141-147

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