On Pareto (dynamically) efficient paths

Abstract

This study deals with two drawbacks in a customary model for distinguishing the dynamically efficient paths in dynamic performance analysis and provides some corrections.

Keywords:

• Data Envelopment Analysis (DEA)
• Pareto efficiency
• Efficient path
• Dynamic efficiency

Notes

¹ In mode (1) the denominator of the first part of the objective function is equal to T + 1, while in 5 it is equal to T (compare model (1) in the present paper and model M1 in 5). This part of the objective function shows the mean value of α ^t s whose number is T + 1. Hence the value of the denominator must be T + 1. This is a minor drawback in 5 and has been corrected here.