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Efficiency analysis to incorporate interval-scale data

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  • Dehnokhalaji, Akram
  • Korhonen, Pekka J.
  • Köksalan, Murat
  • Nasrabadi, Nasim
  • Wallenius, Jyrki

Abstract

We develop an approach to efficiency analysis to enable us to incorporate interval-scale data in addition to ratio-scale data. Our approach introduces a measure of inefficiency and identifies efficient units as is done in Data Envelopment Analysis. The basic idea in our approach is to find the "best" hyperplane separating the units that are better and worse than each unit. "Best" is defined in such a way that the number of not-better units is maximal. The efficiency measure is defined as a proportion of not-better units to all units. The results are invariant under a strictly increasing linear re-scaling of any input- or output-variables. Thus zeroes or negative values do not cause problems for the analysis. The approach is used to analyze the data of the research evaluation exercise recently carried out at the University of Joensuu, Finland.

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Bibliographic Info

Article provided by Elsevier in its journal European Journal of Operational Research.

Volume (Year): 207 (2010)
Issue (Month): 2 (December)
Pages: 1116-1121

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Handle: RePEc:eee:ejores:v:207:y:2010:i:2:p:1116-1121

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Web page: http://www.elsevier.com/locate/eor

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Keywords: Data Envelopment Analysis Interval-scale Research evaluation;

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