A directional distance function approach to void the non-Archimedean in DEA*. Issue 5 (4th May 2018)

• Record Type: Journal Article
• Authors: Färe, Rolf; Charles, Vincent
• Is Part Of: Journal of the Operational Research Society. Volume 69:Issue 5(2018)
• Page Start: 772
• Page End: 775
• Publication Date: 2018-05-04
• Subjects: Data envelopment analysis -- directional distance function -- non-Archimedean; C02 -- C61; Operations research -- Periodicals; 658.4034
• DOI: 10.1057/s41274-017-0264-x
• Languages: English
• ISSNs: 0160-5682

Abstract

Abstract: Over the past years, the data envelopment analysis (DEA) methodology has registered widespread use among researchers from many fields. Furthermore, it is important to note that the non-Archimedean infinitesimal, ɛ, is a key concept in DEA models. Nevertheless, it is known that some computational difficulties arise when using ɛ in DEA. In this short communication, we show how the non-Archimedean may be voided using a directional distance function approach. Thus, our approach avoids choosing a real number (10 −5 or 10 −6 ) as a value for ɛ or estimating the same.