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Improving envelopment in Data Envelopment Analysis under variable returns to scale
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Thanassoulis, Emmanuel, Kortelainen, Mika and Allen, Rachel (2012) Improving envelopment in Data Envelopment Analysis under variable returns to scale. European Journal of Operational Research, Vol. 218 (No. 1). pp. 175-185. doi:10.1016/j.ejor.2011.10.009 ISSN 03772217.
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Official URL: http://dx.doi.org/10.1016/j.ejor.2011.10.009
Abstract
In a Data Envelopment Analysis model, some of the weights used to compute the efficiency of a unit can have zero or negligible value despite of the importance of the corresponding input or output. This paper offers an approach to preventing inputs and outputs from being ignored in the DEA assessment under the multiple input and output VRS environment, building on an approach introduced in Allen and Thanassoulis (2004) for single input multiple output CRS cases. The proposed method is based on the idea of introducing unobserved DMUs created by adjusting input and output levels of certain observed relatively efficient DMUs, in a manner which reflects a combination of technical information and the decision maker’s value judgements. In contrast to many alternative techniques used to constrain weights and/or improve envelopment in DEA, this approach allows one to impose local information on production trade-offs, which are in line with the general VRS technology. The suggested procedure is illustrated using real data.
Item Type: | Journal Article | ||||
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Divisions: | Faculty of Social Sciences > Warwick Business School | ||||
Journal or Publication Title: | European Journal of Operational Research | ||||
Publisher: | Elsevier Science BV | ||||
ISSN: | 03772217 | ||||
Official Date: | 2012 | ||||
Dates: |
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Volume: | Vol. 218 | ||||
Number: | No. 1 | ||||
Page Range: | pp. 175-185 | ||||
DOI: | 10.1016/j.ejor.2011.10.009 | ||||
Status: | Peer Reviewed | ||||
Publication Status: | Published | ||||
Access rights to Published version: | Restricted or Subscription Access |
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