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Π2.2 D. K. Despotis, G. Koronakos (2012). Two-Stage Data Envelopment Analysis: Foundation and recent developments. International conference on Optimization, Computing and Business Analytics (ICOCBA2012), Kolkata, India, December 20-22, 2012.

Abstract—Typically, a two-stage production process assumes
that the first stage transforms external inputs to a number of
intermediate measures, which then are used as inputs to the
second stage that produces the final outputs. The three
fundamental approaches to efficiency assessment in the context
of DEA (two-stage DEA) are the simple (or independent), the
multiplicative and the additive. The simple approach does not
assume any relationship between the two stages and estimates the
overall efficiency and the individual efficiencies for the two stages
independently with typical DEA models. The other two
approaches assume a series relationship between the two stages
and differ in the way they conceptualize the decomposition of the
overall efficiency to the efficiencies of the individual stages. This
paper presents an alternative approach to additive efficiency
decomposition in two-stage DEA. We show that when using the
intermediate measures as pivot, it is possible to aggregate the
efficiency assessment models of the two individual stages in a
single linear program. We test our models with a data set taken
from previous studies and we compare the results with those
reported in the literature.