Abstract
The data envelopment analysis (DEA) model is used to evaluate the relative economic efficiency of a given set of decision making units (DMUs). In this paper, the DEA production possibility set is transferred from the conventional sum form into the intersection form which is represented by a linear inequality system. Although it is time consuming to obtain the intersection form of the production possibility set, it suggests a new angle to investigate the properties of DMUs and to extend the DEA research further beyond the efficiency measurement. Following the intersection form, the analytical formula of the efficiency indicator and projection is given. Various aspects of technical efficiency, returns to scale and evidence of congestion of the DMUs are studied. The relationship between the weak DEA efficiency and the weak Pareto solution is discussed. Finally, a procedure for DMU grouping is proposed to help the decision makers for better resource reallocation and strategy adjustment.
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This research is supported by the National Natural Science Foundation of China under Grant Nos. 70531040, 70871114, and the 985 Research Grant of Renmin University of China, and the Hong Kong CERG Research Fund PolyU5457/06H and PolyU 5485/09H.
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Wei, Q., Yan, H. The data envelopment analysis model with intersection form production possibility set. J Syst Sci Complex 23, 1086–1101 (2010). https://doi.org/10.1007/s11424-010-9218-y
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DOI: https://doi.org/10.1007/s11424-010-9218-y