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author:

Chen, L. (Chen, L..) [1] | Wang, Y.-M. (Wang, Y.-M..) [2]

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Scopus

Abstract:

The efficiency decomposition and frontier projection of traditional two-stage network data envelopment analysis (DEA) model under variable returns to scale (VRS) are often not equivalent; which not only contradicts DEA theory, but also reduces the scientificity of the model. The main reason for this inequivalence is that there is a synergistic effect of variable scale return in two different stages. Therefore, this paper describes the production frontier of two-stage DEA under VRS for analyzing this synergistic effect, and then the efficiency evaluation pitfalls of two-stage DEA under VRS are identified. From the input orientation, output orientation, non-orientation perspectives, different two-stage network DEA models under VRS are respectively constructed to solve these evaluation pitfalls, and the equivalence relationships of their multiplier model and envelopment model are proved; and then the efficiency decomposition and frontier projection with equivalence relationship can be obtained to meet the different needs of decision-makers. Furthermore, variable intermediate element is discussed in the non-orientation model for achieving the Pareto optimality of two stages during the process of efficiency decomposition and frontier projection. By these models, the theoretical foundation of two-stage network DEA under VRS has been further improved. Finally, two examples are provided to illustrate the effectiveness of the new models. © 2024 Elsevier B.V.

Keyword:

Data envelopment analysis Efficiency decomposition Equivalence relationship Frontier projection Two-stage network Variable returns to scale

Community:

  • [ 1 ] [Chen L.]Decision Science Institute, School of Economics & Management, Fuzhou University, Fuzhou, 350116, China
  • [ 2 ] [Wang Y.-M.]Decision Science Institute, School of Economics & Management, Fuzhou University, Fuzhou, 350116, China

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Source :

European Journal of Operational Research

ISSN: 0377-2217

Year: 2024

Issue: 1

Volume: 322

Page: 157-170

6 . 0 0 0

JCR@2023

Cited Count:

WoS CC Cited Count:

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ESI Highly Cited Papers on the List: 0 Unfold All

WanFang Cited Count:

Chinese Cited Count:

30 Days PV: 3

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