Journal
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
Volume 248, Issue 1, Pages 342-346Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/j.ejor.2015.06.050
Keywords
Data envelopment analysis (DEA); Efficiency; Duality; Two-stage; Frontier projection
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In Chen, Cook, Mao, and Zhu (2013), it is demonstrated, as a network DEA pitfall, that while the multiplier and envelopment DEA models are dual models and equivalent under the standard DEA, such is not necessarily true for the two types of network DEA models in deriving divisional efficiency scores and frontier projections. As a reaction to this work, we demonstrate that the duality in the standard DEA naturally migrates to the two-stage network DEA. Formulas are developed to obtain frontier projections and divisional efficiency scores using a DEA model's and its dual solutions. The case of Taiwanese non-life insurance companies is revisited using the newly developed approach. (C) 2015 Elsevier B.V. and Association of European Operational Research Societies (EURO) within the International Federation of Operational Research Societies (IFORS). All rights reserved.
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