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Title of Journal: Ann Oper Res

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Abbravation: Annals of Operations Research

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Springer US

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DOI

10.1002/ir.37019854607

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1572-9338

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Setting handicaps to industrial sectors in DEA ill

Authors: Kidanemariam Berhe Hailu Kaoru Tone
Publish Date: 2016/05/21
Volume: 248, Issue: 1-2, Pages: 189-207
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Abstract

In the ordinary macroeconomic input–output tables the industrial sector consists of several dozen industries and each industry in a certain sector is an aggregate of many companies in the sector The sectoral statistics are the sum of statistics of companies in the respective sector Usually all sectors have the same set of inputs for producing outputs For example they have labour capital and intermediate input as input and amount of production as output We can apply traditional DEA models for evaluation of efficiency regarding all sectors by means of these common input and output factors However there remain concerns about comparing all sectors as a scratch race Some sectors are in fields with matured technologies while others are in emerging fields Some are labour intensive while others are capital intensive These situations lead us to compare sectors under a handicap race In this paper we propose a new DEA model based on the nonconvex frontiers that all associated sectors may exhibit and from which handicaps are derived We apply this model to Ethiopian industryStep 5  Solve the CRS model 15 for each barmathbfx k barmathbfy k referring to the overlinemathbfX overlinemathbfY in the same cluster k and obtain the optimal incluster slacks mathbfs kcl mathbfs kcl+


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