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A linear formulation of the two-level DEA model

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  • Kao, Chiang

Abstract

In efficiency measurement, the input and output factors of similar characteristics can be grouped into input and output categories, respectively, using a weighted-average approach under the data envelopment analysis (DEA) framework to form a two-level DEA model. The resulting two-level model is nonlinear. This note transforms the nonlinear model into a linear one using a variable substitution technique. Linear models are easier to solve than their nonlinear counterparts. The linear transformation is applicable to the two-level model built from both the primal and dual forms of the conventional one-level DEA model. The linear model transformed from the nonlinear model developed from the primal form has a dual which is equivalent to the nonlinear model developed from the dual form.

Suggested Citation

  • Kao, Chiang, 2008. "A linear formulation of the two-level DEA model," Omega, Elsevier, vol. 36(6), pages 958-962, December.
    • Handle: RePEc:eee:jomega:v:36:y:2008:i:6:p:958-962
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    References listed on IDEAS

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    1. Kao, Chiang & Wu, Wann-Yih & Hsieh, Wen-Jen & Wang, Tai-Yue & Lin, Chinho & Chen, Liang-Hsuan, 2008. "Measuring the national competitiveness of Southeast Asian countries," European Journal of Operational Research, Elsevier, vol. 187(2), pages 613-628, June.
    2. C Kao & Y-C Lin, 2004. "Evaluation of the university libraries in Taiwan: total measure versus ratio measure," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(12), pages 1256-1265, December.
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    4. Kao, Chiang & Hung, Hsi-Tai, 2007. "Management performance: An empirical study of the manufacturing companies in Taiwan," Omega, Elsevier, vol. 35(2), pages 152-160, April.
    5. Eilat, Harel & Golany, Boaz & Shtub, Avraham, 2008. "R&D project evaluation: An integrated DEA and balanced scorecard approach," Omega, Elsevier, vol. 36(5), pages 895-912, October.
    6. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
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    Cited by:

    1. Afshin Shariat & Zahra Hosseinnejad & Alireza Pooya, 2024. "Using the optimal control technique in facilities sharing to increased units’ efficiency," OPSEARCH, Springer;Operational Research Society of India, vol. 61(2), pages 741-761, June.
    2. Giménez, Víctor & Ayvar-Campos, Francisco Javier & Navarro-Chávez, José César Lenin, 2017. "Efficiency in the generation of social welfare in Mexico: A proposal in the presence of bad outputs," Omega, Elsevier, vol. 69(C), pages 43-52.
    3. Mohammad Pakkar, 2015. "An integrated approach based on DEA and AHP," Computational Management Science, Springer, vol. 12(1), pages 153-169, January.
    4. Genave, Anna & Blancard, Stéphane & Garabedian, Sabine, 2020. "An assessment of energy vulnerability in Small Island Developing States," Ecological Economics, Elsevier, vol. 171(C).
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    6. Li, Ying & Chiu, Yung-ho & Lin, Tai-Yu, 2019. "Coal production efficiency and land destruction in China's coal mining industry," Resources Policy, Elsevier, vol. 63(C), pages 1-1.
    7. Li, Deng-Feng, 2011. "Linear programming approach to solve interval-valued matrix games," Omega, Elsevier, vol. 39(6), pages 655-666, December.

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