A linear formulation of the two-level DEA model

Chiang Kao

Omega, 2008, vol. 36, issue 6, 958-962

Abstract: In efficiency measurement, the input and output factors of similar characteristics can be grouped into input and output categories, respectively, using a weighted-average approach under the data envelopment analysis (DEA) framework to form a two-level DEA model. The resulting two-level model is nonlinear. This note transforms the nonlinear model into a linear one using a variable substitution technique. Linear models are easier to solve than their nonlinear counterparts. The linear transformation is applicable to the two-level model built from both the primal and dual forms of the conventional one-level DEA model. The linear model transformed from the nonlinear model developed from the primal form has a dual which is equivalent to the nonlinear model developed from the dual form.

Keywords: Data; envelopment; analysis; Efficiency; Two-level; model; Weight; restriction (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (7)

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