Cannot be more efficient than the Pareto efficiency?

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Cannot be more efficient than the Pareto
efficiency?

• Lifen Wu
• Centre for Efficiency and Productivity Analysis
• The University of Queensland
• Australia
• Philadelphia, July 10 12, 2009

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DEA calculations are Pareto optimal
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DEA efficient conditions are those of Pareto
efficiency
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Technical and scale efficiencies
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VRS model with Mixed-Orientation
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Projection to be scale efficient
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Tim Coellis example of 3 inputs and 1 output
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Maximizing sum of slacks derived from strict
positivityvia non-Archimedean constant (BCC
models)
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Maximizing sum of slacks derived from strict
positivityvia non-Archimedean constant (CCR
models)
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Origin of Strict Positivity (1979)
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Expression (2) in Measuring the efficiency of
decision making units (1978)
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DMU0 may not satisfy the 2nd condition
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Strict positivity results in redundant constraint
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or makes original CCR model oriented
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Charnes and Cooper aware of this
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Proposed condition 2 of Pareto-efficiency

• Zero is the only possible solution for all the
  slack variables in envelopment form

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Conclusion

• DEA calculations can be more optimal (efficient)
  than the Pareto optimality (efficiency)

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Pareto efficiency and inequality