Abstract
This chapter presents some basic DEA models that are used to determine the best-practice frontier characterized by (Sect. 1.1) in Chap. 1. These models are called envelopment models, because the identified best-practice frontier envelops all the observations (DMUs). The shapes of best-practice (or efficient) frontiers obtained from these models can be associated with the concept of Returns-to-Scale (RTS) which will be discussed in details in Chap. 13. This is because the best-practice (or efficient) frontiers can be viewed as exhibiting of various types of RTS. However, if the inputs and outputs are not related to a “production function”, RTS concept cannot be applied. Under such cases, RTS is merely used to refer to different shapes of frontiers.
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References
Banker, R. D., Charnes, A., & Cooper, W. W. (1984). Some models for estimating technical and scale inefficiencies in data envelopment analysis. Management Science, 30, 1078–1092.
Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring efficiency of decision making units. European Journal of Operational Research, 2, 429–444.
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Zhu, J. (2014). Envelopment DEA Models. In: Quantitative Models for Performance Evaluation and Benchmarking. International Series in Operations Research & Management Science, vol 213. Springer, Cham. https://doi.org/10.1007/978-3-319-06647-9_2
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DOI: https://doi.org/10.1007/978-3-319-06647-9_2
Publisher Name: Springer, Cham
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