A very small positive constant (generally taken to be 1.0E-6) whose purpose in the primal model, Epsilon prevents any factor from being abused as a free commodity and avoid a unit being falsely classified as efficient. In the dual model, epsilon’s role is to make sure that the minimisation of the intensity factor, takes precedence over the maximisation of the sum of the slacks. The value of epsilon may cause computational inaccuracies, a solution is provided in Ali and Seiford (1993). Ali A and Seiford L (1993), ‘The mathematical programming approach to efficiency analysis’, in: Fried H, Knox C A K and Schmidt S (editors), The measurement of productive efficiency: techniques and applications, Oxford University Press.
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FAQ
- What is Data Envelopment Analysis?
- BCC
- Categorical variable
- CCR (ratio) mode
- Composite unit
- Constant returns to scale
- Convex cone - Conical hull
- Convex hull
- Convexity constraint
- Cross efficiency matrix
- DEA algorithm
- DEA results are biased
- Decreasing returns to scale
- Discretionary factor
- Discriminatory power
- DMU (Decision making unit)
- Dual Model
- Dual weights - dual multipliers
- Efficiency score
- Efficiency/Productive efficiency
- Envelopment form
- Environmental factor
- Epsilon
- Exogeneously fixed factor
- Facet
- Homogeneity
- Increasing returns to scale
- Input
- Input-oriented
- Input/output mix
- Isotonicity
- Most productive scale size (MPSS)
- Multiplier form
- Non-naturally enveloped unit
- Nondiscretionary factor
- Ordinal variable
- Outlier
- Output
- Output-oriented
- Overall efficiency
- Pareto-efficiency/Pareto-Koopmans efficiency:
- Peer group
- Piecewise linearity
- Primal (CCR) model
- Production function
- Productivity
- Projected point
- Radial measure
- Ratio models
- Reference set
- Reference unit
- Scale efficiency
- Scale of operations
- Slacks
- Targets
- Technical efficiency
- Technology/Production technology
- Unit
- Unit isoquant/Isoquant
- Units invariance
- Variable
- Variable returns to scale
- Virtual input(output)
- Virtual multipliers
- Visualisation
- Weight Flexibility
- Weights
- Well-rounded performance
- Window analysis