Scandinavian Working Papers in Economics
Memorandum,
Oslo University, Department of Economics
No 17/2010: A Note on Imposing Strong Complementary Slackness Conditions in DEA
Vladimir Krivonozhko, Finn R. Førsund () and Andrey V. Lychev
Additional contact information
Vladimir Krivonozhko: Institute for Systems Analysis, Russian Academy of Sciences, Moscow
Finn R. Førsund: Dept. of Economics, University of Oslo, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Andrey V. Lychev: Accounts Chamber of the Russian Federation, Moscow
Abstract: A new DEA model has been introduced recently combining the primal and the dual models in order to impose strong complementary slackness conditions. It was claimed that a reference set that contains the maximum number of efficient units can then be determined. The model is very interesting as a theoretical idea. However, not only does the computational burden increase significantly, but it seems also that the basic matrices may be inherently ill-conditioned, leading to wrong results. Numerical experiments have been carried out on two real datasets of medium size with 163 and 920 units. These experiments show pervasive existence of ill-conditioned matrices leading to obviously wrong estimates of efficiency scores, and units declared as efficient reference units while actually being inefficient.
Keywords: Data envelopment analysis; BCC model; DEA/SCSC model; strong complementary slackness conditions
16 pages, January 3, 2011
Full text files
Memo-17-2010.pdf
- Published as
- Vladimir Krivonozhko, Finn R. Førsund and Andrey V. Lychev, (2012), 'A Note on Imposing Strong Complementary Slackness Conditions in DEA', european journal of operational research, vol 220, pages 716-721
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