A strong efficiency measure for CCR/BCC models

David José Cova-Alonso, Juan José Díaz-Hernández and Eduardo Martínez-Budría

European Journal of Operational Research, 2021, vol. 291, issue 1, 284-295

Abstract: The Farrell technical efficiency measure computes the maximum proportional reduction that can be operated on inputs without affecting the level of output. In a multi-input and multi-output context, the first mathematical programming based reformulation of this problem is known as CCR/BCC efficiency measures. There are two drawbacks to this measure. First, it does not give value to any inefficiency resulting from the possibility of reducing some inputs and/or increasing some outputs in addition to the maximum proportional reduction in inputs. Second, as a result of the above, it does not unequivocally identify Pareto-Koopmans efficient activities.

Keywords: Data Envelopment Analysis (DEA); Technical efficiency measure; DEA Radial models (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:291:y:2021:i:1:p:284-295

DOI: 10.1016/j.ejor.2020.09.006

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