Theoretical perspectives of trade-off analysis using DEA

Mette Asmild; Joseph C. Paradi; David N. Reese

doi:10.1016/j.omega.2004.11.002

Theoretical perspectives of trade-off analysis using DEA

Mette Asmild, Joseph C. Paradi^*, David N. Reese

^*Corresponding author for this work

21 Citations (Scopus)

Abstract

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.

Original language	English
Journal	Omega
Volume	34
Issue number	4
Pages (from-to)	337-343
Number of pages	7
ISSN	0305-0483
DOIs	https://doi.org/10.1016/j.omega.2004.11.002
Publication status	Published - 2006
Externally published	Yes

Keywords

Data envelopment analysis (DEA)
Marginal
Non-marginal
Rates of substitution
Trade-off

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10.1016/j.omega.2004.11.002

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title = "Theoretical perspectives of trade-off analysis using DEA",

abstract = "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.",

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pages = "337--343",

journal = "Omega: The International Journal of Management Science",

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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 -

Theoretical perspectives of trade-off analysis using DEA

Abstract

Keywords

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