Fuzzy efficiency without convexity

TY - JOUR

T1 - Fuzzy efficiency without convexity

AU - Hougaard, Jens Leth

AU - Balezentis, Tomas

PY - 2014/11/16

Y1 - 2014/11/16

N2 - In this paper we develop a fuzzy version of the crisp Free Disposal Hull (FDH) method for measuring technical efficiency for samples of similar production units. The FDH-method is basically Data Envelopment Analysis (DEA) without the underlying assumption of convexity of the technology set. Our approach builds directly upon the definition of Farrell's indexes of technical efficiency used in crisp FDH. Therefore we do not require the use of fuzzy programming techniques but only utilize ranking probabilities of intervals as well as a related definition of dominance between pairs of intervals. We illustrate the approach using a data set of 200 Lithuanian family farms for the period of 2004–2009.

AB - In this paper we develop a fuzzy version of the crisp Free Disposal Hull (FDH) method for measuring technical efficiency for samples of similar production units. The FDH-method is basically Data Envelopment Analysis (DEA) without the underlying assumption of convexity of the technology set. Our approach builds directly upon the definition of Farrell's indexes of technical efficiency used in crisp FDH. Therefore we do not require the use of fuzzy programming techniques but only utilize ranking probabilities of intervals as well as a related definition of dominance between pairs of intervals. We illustrate the approach using a data set of 200 Lithuanian family farms for the period of 2004–2009.

U2 - 10.1016/j.fss.2014.04.009

DO - 10.1016/j.fss.2014.04.009

M3 - Journal article

SN - 0165-0114

VL - 255

SP - 17

EP - 29

JO - Fuzzy Sets and Systems

JF - Fuzzy Sets and Systems

ER -