New insights and theoretical conditions for determining minor and major consolidations in the inverse DEA

Abstract Accepted by: Ali Emrouznejad In the current paper, we propose new conditions for determining major and minor consolidation using the inverse data envelopment analysis models. We categorized the causes of major consolidation into pre and post-effect. Pre-effects may happen due to the omission of pre-merged units and post-effects are associated with the fact that the merged unit may not belong to the production set. The idea is described by numerical examples and graphical illustrations and an empirical analysis in banking also helps us to show the necessity, strength, and applicability of the proposed models for real-world applications.