Building And Evaluation Of DEA Models Of Adjusted Russell Graph Efficiency Measure

In this paper, firstly, the development of DEA (Data Envelopment Analysis)theories, DEA methods and DEA application are discussed. The basic DEA model,DEA efficiency theories are analyzed. Based on these, this paper detailedly analyzesDEA's features and advantages;secondly, the paper discusses the core issue in theenterprise—the measurement of efficiency of production. Efficiency is the quality ordegree of producing a set of outputs or desired effects. Most modern writing onproducer theory assumes that producers are efficient, from this and other assumptionsthe structure of production technology and the structure of commodity markets arederived. But the hypotheses is an ideal condition, the productive inefficiency existscannot be denied. This paper studies the productive inefficiency and describes theproduction functions (IJPF) in two conditions: single output and multi-outputs.Corresponding production structures: Homothetic, Homogeneous, Ray-Homothetic andRay-Homogeneous structures which can improve the efficiency are also discussed;thirdly, to solve the question of measurement of production efficiency, combiningtraditional Russell measure, an arithmetic of adjusted Russell efficiency measure isprovided in this paper through transferring original summation of Russell input andoutput measure into their ratio form. A DEA model is also provided based on thisarithmetic to solve the computing difficulties and an instance is shown to analyzeeconomical benefit.