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Multi-dimensional Nondiscretionary Factors in Data Envelopment Analysis: A Slack-Based Measure

Author

Listed:
  • Alireza Amirteimoori

    (Islamic Azad University)

  • Mahnaz Maghbouli

    (Islamic Azad University)

  • Sohrab Kordrostami

    (Islamic Azad University)

Abstract

Various extension using data envelopment analysis (DEA) are available in the literature for performance measurement in public sector. The existence of multiple non- discretionary factors in DEA based public sector models leads to overestimation of the efficiency. This paper proposes a two-step procedure to handle non-discretionary factors in DEA models. In the first step, the multiple non-discretionary factors are transformed into a single artificial factor and then, using a slack-based model the performance assessment is done. To highlight the comparison, an analysis using simulated data is performed. The results show that the proposed two-stage approach is relatively better than existing approaches when we apply the slack based measure of efficiency.

Suggested Citation

  • Alireza Amirteimoori & Mahnaz Maghbouli & Sohrab Kordrostami, 2016. "Multi-dimensional Nondiscretionary Factors in Data Envelopment Analysis: A Slack-Based Measure," Computational Economics, Springer;Society for Computational Economics, vol. 48(2), pages 211-223, August.
    • Handle: RePEc:kap:compec:v:48:y:2016:i:2:d:10.1007_s10614-015-9525-4
    DOI: 10.1007/s10614-015-9525-4
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    References listed on IDEAS

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