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2013 An Extension of Cross Redundancy of Interval Scale Outputs and Inputs in DEA
Farhad Hosseinzadeh-Lotfi, Gholam-Reza Jahanshahloo, Mansour Mohammadpour
J. Appl. Math. 2013(SI24): 1-7 (2013). DOI: 10.1155/2013/658635

Abstract

It is well known that data envelopment analysis (DEA) models are sensitive to selection of input and output variables. As the number of variables increases, the ability to discriminate between the decision making units (DMUs) decreases. Thus, to preserve the discriminatory power of a DEA model, the number of inputs and outputs should be kept at a reasonable level. There are many cases in which an interval scale output in the sample is derived from the subtraction of nonnegative linear combination of ratio scale outputs and nonnegative linear combination of ratio scale inputs. There are also cases in which an interval scale input is derived from the subtraction of nonnegative linear combination of ratio scale inputs and nonnegative linear combination of ratio scale outputs. Lee and Choi (2010) called such interval scale output and input a cross redundancy. They proved that the addition or deletion of a cross-redundant output variable does not affect the efficiency estimates yielded by the CCR or BCC models. In this paper, we present an extension of cross redundancy of interval scale outputs and inputs in DEA models. We prove that the addition or deletion of a cross-redundant output and input variable does not affect the efficiency estimates yielded by the CCR or BCC models.

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Farhad Hosseinzadeh-Lotfi. Gholam-Reza Jahanshahloo. Mansour Mohammadpour. "An Extension of Cross Redundancy of Interval Scale Outputs and Inputs in DEA." J. Appl. Math. 2013 (SI24) 1 - 7, 2013. https://doi.org/10.1155/2013/658635

Information

Published: 2013
First available in Project Euclid: 14 March 2014

zbMATH: 06950806
MathSciNet: MR3108909
Digital Object Identifier: 10.1155/2013/658635

Rights: Copyright © 2013 Hindawi

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Vol.2013 • No. SI24 • 2013
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