Terminal units in DEA: Definition and Determination
AbstractApplications of the DEA models show that inadequate results may arise in some cases, two of these inadequacies being: a) too many efficient units may appear in some DEA models; b) a DEA model may show an inefficient unit from the point of view of experts as an efficient one. The purpose of this paper is to identify units that may unduly become efficient. The concept of a terminal unit is introduced for such units. A method for improving the adequacy of DEA models based on terminal units is suggested, and an example shown based on a real-life data set for Russian banks.
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Bibliographic InfoPaper provided by Oslo University, Department of Economics in its series Memorandum with number 04/2011.
Length: 27 pages
Date of creation: 17 Feb 2011
Date of revision:
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Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Phone: 22 85 51 27
Fax: 22 85 50 35
Web page: http://www.oekonomi.uio.no/indexe.html
More information through EDIRC
Terminal units; DEA; Efficiency; Weight restrictions; Domination cones;
Find related papers by JEL classification:
- C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-03-19 (All new papers)
- NEP-CSE-2011-03-19 (Economics of Strategic Management)
- NEP-ECM-2011-03-19 (Econometrics)
- NEP-EFF-2011-03-19 (Efficiency & Productivity)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Førsund , Finn R. & Kittelsen , Sverre A. & Krivonozhko , Vladimir E., 2007. "Farrell Revisited: Visualising the DEA Production Frontier," Memorandum 15/2007, Oslo University, Department of Economics.
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