Spherical frontier DEA model based on a constant sum of inputs

Abstract

In this paper, a Data Envelopment Analysis (DEA) model in which a fixed input needs to be assigned to a group of Decision-Making Units (DMUs) is presented. This is performed by assuming the existence of a geometric place represented by a sphere that characterizes the DEA frontier. It is shown that, under this assumption, it becomes relatively easy to find a way to distribute the fixed input to all DMUs, by considering that the individual assignments will be fair through the requirement that all DMUs be efficient or, in other words, be located on the spherically shaped efficiency frontier. A model is presented and results are compared to those obtained by using two different methods proposed in the literature within the same context.

Keywords:

• data envelopment analysis
• constant sum of inputs
• fixed cost allocation

Acknowledgements

The authors would like to acknowledge the financial support of CNPq (Brazilian Ministry of Science and Technology).