Efficiency analysis to incorporate interval-scale data
We develop an approach to efficiency analysis to enable us to incorporate interval-scale data in addition to ratio-scale data. Our approach introduces a measure of inefficiency and identifies efficient units as is done in Data Envelopment Analysis. The basic idea in our approach is to find the "best" hyperplane separating the units that are better and worse than each unit. "Best" is defined in such a way that the number of not-better units is maximal. The efficiency measure is defined as a proportion of not-better units to all units. The results are invariant under a strictly increasing linear re-scaling of any input- or output-variables. Thus zeroes or negative values do not cause problems for the analysis. The approach is used to analyze the data of the research evaluation exercise recently carried out at the University of Joensuu, Finland.
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"New Tools for Dealing with Errors-in-Variables in DEA,"
Public Economics Working Paper Series
ces0006, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics.
- Laurens CHERCHYE & Timo KUOSMANEN & Thierry POST, 2000. "New Tools for Dealing with Errors-in-Variables in DEA," Working Papers Department of Economics ces0006, KU Leuven, Faculty of Economics and Business, Department of Economics.
- 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.
- Korhonen, Pekka J. & Luptacik, Mikulas, 2004. "Eco-efficiency analysis of power plants: An extension of data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 154(2), pages 437-446, April.
- Halme, Merja & Joro, Tarja & Koivu, Matti, 2002. "Dealing with interval scale data in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 137(1), pages 22-27, February.
- Adler, Nicole & Friedman, Lea & Sinuany-Stern, Zilla, 2002. "Review of ranking methods in the data envelopment analysis context," European Journal of Operational Research, Elsevier, vol. 140(2), pages 249-265, July.
- Charnes, A. & Cooper, W. W. & Golany, B. & Seiford, L. & Stutz, J., 1985. "Foundations of data envelopment analysis for Pareto-Koopmans efficient empirical production functions," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 91-107.
- R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September. Full references (including those not matched with items on IDEAS)
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