[Data normalization for data envelopment analysis and its application to directional distance function]
AbstractDirectional distance function is the generalization of radial model in data envelopment analysis. It has the capacity of dealing with undesirable outputs, but the problem is that it has no unit-invariant measurement of efficiency, which hampers its application to empirical studies. Data normalization for data envelopment analysis is a universal solution for the problem of unit-invariance, and the efficiency keeps unchanged in radial and non-radial models after data normalization. A unit-invariant efficiency measure for directional distance function is developed based on DEA data normalization.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 31995.
Date of creation: 10 Mar 2011
Date of revision:
Data Envelopment Analysis; Data Normalization; Units Invariance; Directional Distance Function;
Find related papers by JEL classification:
- C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
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