«

»

Print this Post

Convexity constraint

Ensures that the region specified by a set of points (units) forms a convex set. The BCC model is obtained by simply adding a convexity constraint Sigma (Lambdas)=1 to the dual of the CCR model, which means that each composite unit is a convex combination of its reference units. For a dull discussion on convexity, see a standard non-linear programming text such as Bazaraa et aI (1993). For details about BCC model See Banker et al (1984).

-Banker, R.D., R.F. Charnes, & W.W. Cooper (1984) “Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis, Management Science vol. 30, pp. 1078–1092.
– Bazaraa M, Sherahi H and Shetty C M, Nonlinear programming, John Wiley & Sons, 1993, or later edition.

 

 

Leave a Reply

goin up
Skip to toolbar