Determining rates of change in data envelopment analysis

Abstract

This paper presents a general method for determining rates of change of outputs with respect to inputs along efficient facets of the Pareto-optimal frontier common to several empirical production possibility sets in Data Envelopment Analysis. As a prerequisite step, a theoretical analysis is provided for identifying the efficient facets. Non-negativity of these rates of change are discussed via ‘cone direction’ developments in both the input and output spaces.

Keywords:

• data envelopment analysis
• efficient facet
• rates of change
• relative interior
• linear independency