A Method for Calculating the Marginal Rate in the FDH Model

Subject Areas : International Journal of Industrial Mathematics

M. Mirzaei ¹ , S. Kordrostami ² , AR. Amirteimoori ³ , M. G. Chegini ⁴

1 - Department of Mathematics, Lahijan Branch, Islamic Azad University, Lahijan, Iran
2 - Department of Mathematics, Lahijan Branch, Islamic Azad University, Lahijan, Iran
3 - Department of Mathematics, Rasht Branch, Islamic Azad University, Rasht, Iran.
4 - Department of Management, Rasht Branch, Islamic Azad University, Rasht, Iran

Received: 2016-07-15 Accepted : 2016-11-01 Published : 2019-01-01

Keywords: Marginal rate, Free disposal hull (FDH), Data envelopment analysis (DEA),

Abstract :

Trade-off reviews the rate of marginal substitution of inputs and outputs onto the efficient frontier. On the other hand, marginal rates of substitution (MRS) are important quantities for analysts and managers. In this paper, by changing the method of Asmild (2004), an algorithm is found that it can be used to calculate the marginal rate of the free disposal hull (FDH) model.