A proxy approach to dealing with the infeasibility problem in super-efficiency data envelopment analysis

Gang Cheng and Panagiotis Zervopoulos

MPRA Paper from University Library of Munich, Germany

Abstract: Super-efficiency data envelopment analysis (SE-DEA) models are expressions of the traditional DEA models featuring the exclusion of the unit under evaluation from the reference set. The SE-DEA models have been applied in various cases such as sensitivity and stability analysis, measurement of productivity changes，outliers’ identification，and classification and ranking of decision making units (DMUs). A major deficiency in the SE-DEA models is their infeasibility in determining super-efficiency scores for some efficient DMUs when variable, non-increasing and non-decreasing returns to scale (VRS, NIRS, NDRS) prevail. The scope of this study is the development of an oriented proxy approach for SE-DEA models in order to tackle the infeasibility problem. The proxy introduced to the SE-DEA models replaces the original infeasible DMU in the sample and guarantees a feasible optimal solution. The proxy approach yields the same scores as the traditional SE-DEA models to the feasible DMUs.

Keywords: Data envelopment analysis (DEA); Super-efficiency (SE); Infeasibility; Orientation (search for similar items in EconPapers)
JEL-codes: C02 C61 C67 (search for similar items in EconPapers)
Date: 2012-06
New Economics Papers: this item is included in nep-ecm and nep-eff
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