TY - JOUR
T1 - Theoretical perspectives of trade-off analysis using DEA
AU - Asmild, Mette
AU - Paradi, Joseph C.
AU - Reese, David N.
PY - 2006
Y1 - 2006
N2 - Because of the piecewise linear nature of the frontier in data envelopment analysis (DEA), estimated marginal rates of substitution are only valid for infinitesimal, or small finite, changes in one or more variables. Analysing the impacts of very small changes is not adequate for many situations, where the consequences of substantial changes in variables are of interest to for instance managers. This paper develops methods for evaluating larger, i.e. non-marginal, tradeoffs between variables in DEA. The methods are capable of handling both scalar and additive changes. Finally, the approaches for evaluating basic pairwise tradeoffs are generalised in order to enable assessment of the impact on one or more throughputs of the change in one or more of the other throughputs.
AB - Because of the piecewise linear nature of the frontier in data envelopment analysis (DEA), estimated marginal rates of substitution are only valid for infinitesimal, or small finite, changes in one or more variables. Analysing the impacts of very small changes is not adequate for many situations, where the consequences of substantial changes in variables are of interest to for instance managers. This paper develops methods for evaluating larger, i.e. non-marginal, tradeoffs between variables in DEA. The methods are capable of handling both scalar and additive changes. Finally, the approaches for evaluating basic pairwise tradeoffs are generalised in order to enable assessment of the impact on one or more throughputs of the change in one or more of the other throughputs.
KW - Data envelopment analysis (DEA)
KW - Marginal
KW - Non-marginal
KW - Rates of substitution
KW - Trade-off
U2 - 10.1016/j.omega.2004.11.002
DO - 10.1016/j.omega.2004.11.002
M3 - Journal article
AN - SCOPUS:27844604202
SN - 0305-0483
VL - 34
SP - 337
EP - 343
JO - Omega: The International Journal of Management Science
JF - Omega: The International Journal of Management Science
IS - 4
ER -