Abstract

Centralized data development analysis has attracted more attention on the resource allocation by several studies. However, the underlying concepts and practical treatments are not systematically exposures and explanation till now. For filling with this gap, this study aims to elaborate more on how the centralized data envelopment analysis works from a different perspective. Therefore, we proposed a new production possibility set and raised some axiomatic foundations for explaining the underlying assumption of centralized data development analysis. Furthermore, we provide some reasoning to demonstrate that the proposed model is entirely equivalent to the conventional centralized model in envelopment and multiplier forms. Pass through a numerical dataset was designed; we explained the underplaying knowledge of theoretical foundation and compared with the conventional centralized DEA model.

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