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Economic Perspectives on DEA

Author

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  • Førsund, Finn

    (Dept. of Economics, University of Oslo)

Abstract

Research on productive efficiency at the firm level has developed as an important and active strand of research the last decades, both within operations research, management science and economics. However, the interests pursued within the fields have had some differences regarding sound theoretical foundations. The perspective within economics is highlighted and a critique of some research directions judged as unfortunate is offered.

Suggested Citation

  • Førsund, Finn, 2015. "Economic Perspectives on DEA," Memorandum 10/2015, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2015_010
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    File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2015/memo-10-2015.pdf
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    References listed on IDEAS

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    2. Charnes, A. & Cooper, W. W. & Huang, Z. M. & Sun, D. B., 1990. "Polyhedral Cone-Ratio DEA Models with an illustrative application to large commercial banks," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 73-91.
    3. Finn Førsund & Nikias Sarafoglou, 2002. "On the Origins of Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 17(1), pages 23-40, January.
    4. Finn Førsund & Lennart Hjalmarsson, 2004. "Are all Scales Optimal in DEA? Theory and Empirical Evidence," Journal of Productivity Analysis, Springer, vol. 21(1), pages 25-48, January.
    5. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    6. R. Allen & A. Athanassopoulos & R.G. Dyson & E. Thanassoulis, 1997. "Weights restrictions and value judgements in Data Envelopment Analysis: Evolution, development and future directions," Annals of Operations Research, Springer, vol. 73(0), pages 13-34, October.
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    8. Forsund, Finn R. & Sarafoglou, Nikias, 2005. "The tale of two research communities: The diffusion of research on productive efficiency," International Journal of Production Economics, Elsevier, vol. 98(1), pages 17-40, October.
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    14. D K Despotis, 2002. "Improving the discriminating power of DEA: focus on globally efficient units," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 53(3), pages 314-323, March.
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    Cited by:

    1. Førsund, Finn R., 2018. "Economic interpretations of DEA," Socio-Economic Planning Sciences, Elsevier, vol. 61(C), pages 9-15.

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    More about this item

    Keywords

    Efficiency measures; data envelopment analysis; shadow prices; weight restrictions; cross efficiency;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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