A directional distance function approach to void the non-Archimedean in DEA

Rolf Färe and Vincent Charles

Journal of the Operational Research Society, 2018, vol. 69, issue 5, 772-775

Abstract: Over the past years, the data envelopment analysis (DEA) methodology has registered widespread use among researchers from many fields. Furthermore, it is important to note that the non-Archimedean infinitesimal, ɛ, is a key concept in DEA models. Nevertheless, it is known that some computational difficulties arise when using ɛ in DEA. In this short communication, we show how the non-Archimedean may be voided using a directional distance function approach. Thus, our approach avoids choosing a real number (10−5 or 10−6) as a value for ɛ or estimating the same.

Date: 2018
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DOI: 10.1057/s41274-017-0264-x

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