Sensitivity in data envelopment analysis using an approximate inverse matrix |
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Authors: | L Neralić R E Wendell |
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Affiliation: | 1.University of Zagreb,Zagreb,Croatia;2.University of Pittsburgh,Pittsburgh,USA |
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Abstract: | In this paper, sensitivity analysis of the Charnes–Cooper–Rhodes model in data envelopment analysis (DEA) is studied for the case of perturbation of all outputs and of all inputs of an efficient decision-making unit (DMU). Using an approximate inverse of the perturbed optimal basis matrix, an approximate preservation of efficiency for an efficient DMU under these perturbations is considered. Sufficient conditions for an efficient DMU to preserve its efficiency are obtained in that case. An illustrative example is provided. |
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