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author:

Chen, Lei (Chen, Lei.) [1] (Scholars:陈磊) | Wang, Ying-Ming (Wang, Ying-Ming.) [2] (Scholars:王应明)

Indexed by:

EI Scopus SCIE

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.

Keyword:

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

Community:

  • [ 1 ] [Chen, Lei]Fuzhou Univ, Decis Sci Inst, Sch Econ & Management, Fuzhou 350116, Peoples R China
  • [ 2 ] [Wang, Ying-Ming]Fuzhou Univ, Decis Sci Inst, Sch Econ & Management, Fuzhou 350116, Peoples R China

Reprint 's Address:

  • 王应明

    [Wang, Ying-Ming]Fuzhou Univ, Decis Sci Inst, Sch Econ & Management, Fuzhou 350116, Peoples R China

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Source :

EUROPEAN JOURNAL OF OPERATIONAL RESEARCH

ISSN: 0377-2217

Year: 2025

Issue: 1

Volume: 322

Page: 157-170

6 . 0 0 0

JCR@2023

Cited Count:

WoS CC Cited Count:

SCOPUS Cited Count:

ESI Highly Cited Papers on the List: 0 Unfold All

WanFang Cited Count:

Chinese Cited Count:

30 Days PV: 5

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