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An epsilon-based measure of efficiency in DEA - An alternative method for the affinity index

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  • Cheng, Gang
  • Qian, Zhenhua
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    Abstract

    Tone & Tsutsui (2010) introduced a hybrid model (epsilon-based measure, EBM), which combines both radial and non-radial measures in a unified framework [Tone, K., & Tsutsui, M. (2010). An epsilon-based measure of efficiency in DEA - A third pole of technical efficiency. European Journal of Operational Research, 207, 1554-1563.]. We find that their method to construct the affinity matrix may be questionable. Their method may not reflect the true degree of scattered distribution of inputs or outputs. Based on Tone & Tsutsui’s idea, we introduced an alternative method of constructing the affinity matrix, which overcomes the drawback of their method.

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    File URL: http://mpra.ub.uni-muenchen.de/41680/
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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 41680.

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    Date of creation: 06 Nov 2011
    Date of revision: 06 Nov 2011
    Handle: RePEc:pra:mprapa:41680

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    Related research

    Keywords: Data Envelopment Analysis; Epsilon-based Measure (EBM); Affinity Index;

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    1. Tone, Kaoru & Tsutsui, Miki, 2010. "An epsilon-based measure of efficiency in DEA - A third pole of technical efficiency," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1554-1563, December.
    2. Tone, Kaoru, 2001. "A slacks-based measure of efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 130(3), pages 498-509, May.
    3. Kaoru Tone & Miki Tsutsui, 2010. "An epsilon-based measure of efficiency in DEA revisited -A third pole of technical efficiency," GRIPS Discussion Papers 09-21, National Graduate Institute for Policy Studies.
    4. 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.
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