An epsilon-based measure of efficiency in DEA revisited -A third pole of technical efficiency
AbstractIn DEA, we have two measures of technical efficiency with different characteristics: radial and non-radial. In this paper we compile them into a composite model called “epsilon-based measure (EBM).” For this purpose we introduce two parameters which connect radial and non-radial models. These two parameters are obtained from the newly defined affinity index between inputs or outputs along with principal component analysis on the affinity matrix. Thus, EBM takes into account diversity of input/output data and their relative importance for measuring technical efficiency.
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Bibliographic InfoPaper provided by National Graduate Institute for Policy Studies in its series GRIPS Discussion Papers with number 09-21.
Length: 26 pages
Date of creation: Feb 2010
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Data envelopment analysis; Radial; Non-radial; CCR; SBM; EBM; Principal component analysis;
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- Cheng, Gang & Qian, Zhenhua, 2011. "An epsilon-based measure of efficiency in DEA - An alternative method for the affinity index," MPRA Paper 41680, University Library of Munich, Germany, revised 06 Nov 2011.
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