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A distance friction minimization approach in data envelopment analysis: A comparative study on airport efficiency

  • Suzuki, Soushi
  • Nijkamp, Peter
  • Rietveld, Piet
  • Pels, Eric

This paper aims to present a newly developed distance friction minimization (DFM) method in the context of data envelopment analysis (DEA) in order to generate an appropriate (non-radial) efficiency-improving projection model, for both input reduction and output increase. In this approach, a generalized distance function, based on a Euclidean distance metric in weighted spaces, is proposed to assist a decision making unit (DMU) to improve its performance by an appropriate movement towards the efficiency frontier surface. A suitable form of multidimensional projection function for efficiency improvement is given by a Multiple Objective Quadratic Programming (MOQP) model. The paper describes the various steps involved in a systematic manner. The above-mentioned DFM model is illustrated empirically by using a data set on 30 European airports, where the aim is to present a comparative analysis of the efficiency of operational management in these airports. In addition, the comparative analysis of these airports is able to assess both input slacks and output slacks (or a combination of input reduction and output rise).

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Article provided by Elsevier in its journal European Journal of Operational Research.

Volume (Year): 207 (2010)
Issue (Month): 2 (December)
Pages: 1104-1115

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Handle: RePEc:eee:ejores:v:207:y:2010:i:2:p:1104-1115
Contact details of provider: Web page: http://www.elsevier.com/locate/eor

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