A Ssessment of C Onvexity a Xioms in Dea
نویسندگان
چکیده
Data Envelopment Analysis (DEA) is traditionally based on the axiom of convex production possibility sets. In many research situations this axiom is considered overly restrictive, and recent research has focused on finding suitable ways of relaxing it. Unfortunately, there currently is no consensus in the DEA field on why and how to account for non-convexities. This paper explores empirical evidence as well as theoretical and practical arguments in favor of and against convexity axioms in DEA. These considerations are of key importance for model specification in practical applications, as well as for directing future research on DEA.
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