Cross-inefficiency with the Variable Returns to Scale in ‎DEA

Document Type : Research Paper


1 Department of Mathematics, University of Mazandaran, Babolsar, Iran

2 Department of Mathematics, Science and Research Branch, Islamic Azad University, Tehran, Iran


The cross-efficiency ranking method is a well-known method in DEA which is frequently used under the constant returns to scale assumption; while various applications exist based on the variable returns to scale (VRS). This is due to the presence of negative input-oriented VRS cross-efficiencies. In this paper, each cross-efficiency is replaced by an equivalent distance measure as inefficiency measure. Then, the cross-inefficiency method is developed under the VRS assumption.


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