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Constructions of economic functions and calculations of marginal rates in DEA using parametric optimization methods
Authors:V E Krivonozhko  O B Utkin  A V Volodin  I A Sablin  M Patrin
Institution:1.Institute for Systems Analysis,Moscow,Russia;2.Corp. GRUPPA,Moscow,Russia;3.Global S. Consulting Company,Moscow,Russia
Abstract:The aim of the paper is to present and substantiate a technique to visualize DEA modelling results without any loss of mathematical rigour. The proposed family of parametric optimization methods allows one to construct an intersection of the multidimensional frontier with a two-dimensional plane determined by any pair of given directions. This approach reduces the efficiency analysis of production units to the investigation of well-known functions in economics. We also propose constructive methods to calculate marginal rates of substitution, marginal rates of transformation and so on.
Keywords:
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