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Network DEA

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  • Fare, Rolf
  • Grosskopf, Shawna

Abstract

This chapter describes network DEA models, where a network consists of sub-technologies. A DEA model typically describes a technology to a level of abstraction necessary for the analyst’s purpose, but leaves out a description of the sub-technologies that make up the internal functions of the technology. These sub-technologies are usually treated as a “black box”, i.e., there is no information about what happens inside them. The specification of the sub-technologies enables the explicit examination of input allocation and intermediate products that together form the production process. The combination of sub-technologies into networks provides a method of analyzing problems that the traditional DEA models cannot address. We apply network DEA methods to three examples; a static production technology with intermediate products, a dynamic production technology, and technology adoption (or embodied technological change). The data and GAMS code for two examples of network DEA models are listed in appendices.
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Suggested Citation

  • Fare, Rolf & Grosskopf, Shawna, 2000. "Network DEA," Socio-Economic Planning Sciences, Elsevier, vol. 34(1), pages 35-49, March.
    • Handle: RePEc:eee:soceps:v:34:y:2000:i:1:p:35-49
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