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2 months ago in Efficiency Measurement By Anusha

Is there a primal maximization version of the input-oriented VRS DEA model?

I'm used to seeing the input-oriented VRS model as a minimization problem (min θ). But is there a way to formulate it as a maximization problem instead?

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By Kunal Answered 1 month ago

Not directly in the way you're thinking. The input-oriented VRS model is naturally a minimization in its envelopment form. Its dual is a maximization problem (the multiplier form). So if you want a maximization, you'd typically solve the dual. A "primal maximization" for input orientation isn't standard—that formulation is usually reserved for output orientation (maximizing outputs). The math is symmetric, but the convention matters. If you need a max, solve the dual. If you need a min, solve the primal. They give the same efficiency score.

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