IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v220y2012i2p588-590.html
   My bibliography  Save this article

A comment on “cost efficiency in data envelopment analysis with data uncertainty”

Author

Listed:
  • Fang, Lei
  • Li, Hecheng

Abstract

In a recent paper by Mostafaee and Saljooghi [Mostafaee, A., Saljooghi, F.H., 2010. Cost efficiency in data envelopment analysis with data uncertainty. European Journal of Operational Research, 202, 595–603], the authors extend the classical cost efficiency model to address data uncertainty. They claim that the upper bound of the cost efficiency can be obtained at extreme points when the input prices appear in the form of ranges. In this paper, we present our counterexamples and comments on the contention by Mostafaee and Saljooghi.

Suggested Citation

  • Fang, Lei & Li, Hecheng, 2012. "A comment on “cost efficiency in data envelopment analysis with data uncertainty”," European Journal of Operational Research, Elsevier, vol. 220(2), pages 588-590.
    • Handle: RePEc:eee:ejores:v:220:y:2012:i:2:p:588-590
    DOI: 10.1016/j.ejor.2012.01.053
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221712000914
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2012.01.053?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Schaffnit, Claire & Rosen, Dan & Paradi, Joseph C., 1997. "Best practice analysis of bank branches: An application of DEA in a large Canadian bank," European Journal of Operational Research, Elsevier, vol. 98(2), pages 269-289, April.
    2. Jahanshahloo, G.R. & Soleimani-damaneh, M. & Mostafaee, A., 2008. "A simplified version of the DEA cost efficiency model," European Journal of Operational Research, Elsevier, vol. 184(2), pages 814-815, January.
    3. Taylor, William M. & Thompson, Russell G. & Thrall, Robert M. & Dharmapala, P. S., 1997. "DEA/AR efficiency and profitability of Mexican banks a total income model," European Journal of Operational Research, Elsevier, vol. 98(2), pages 346-363, April.
    4. Mostafaee, A. & Saljooghi, F.H., 2010. "Cost efficiency measures in data envelopment analysis with data uncertainty," European Journal of Operational Research, Elsevier, vol. 202(2), pages 595-603, April.
    5. Kuosmanen, Timo & Post, Thierry, 2001. "Measuring economic efficiency with incomplete price information: With an application to European commercial banks," European Journal of Operational Research, Elsevier, vol. 134(1), pages 43-58, October.
    6. Kuosmanen, Timo & Post, Thierry, 2003. "Measuring economic efficiency with incomplete price information," European Journal of Operational Research, Elsevier, vol. 144(2), pages 454-457, January.
    7. Camanho, A. S. & Dyson, R. G., 2005. "Cost efficiency measurement with price uncertainty: a DEA application to bank branch assessments," European Journal of Operational Research, Elsevier, vol. 161(2), pages 432-446, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Blancard, Stéphane & Martin, Elsa, 2014. "Energy efficiency measurement in agriculture with imprecise energy content information," Energy Policy, Elsevier, vol. 66(C), pages 198-208.
    2. Fang, Lei & Li, Hecheng, 2015. "Cost efficiency in data envelopment analysis under the law of one price," European Journal of Operational Research, Elsevier, vol. 240(2), pages 488-492.
    3. Lei Fang & Hecheng Li, 2013. "Lower bound of cost efficiency measure in DEA with incomplete price information," Journal of Productivity Analysis, Springer, vol. 40(2), pages 219-226, October.
    4. Piran, Fabio Sartori & Lacerda, Daniel Pacheco & Camanho, Ana S. & Silva, Maria C.A., 2021. "Internal benchmarking to assess the cost efficiency of a broiler production system combining data envelopment analysis and throughput accounting," International Journal of Production Economics, Elsevier, vol. 238(C).
    5. Hatami-Marbini, Adel & Arabmaldar, Aliasghar, 2021. "Robustness of Farrell cost efficiency measurement under data perturbations: Evidence from a US manufacturing application," European Journal of Operational Research, Elsevier, vol. 295(2), pages 604-620.
    6. Dariush Akbarian, 2020. "Overall profit Malmquist productivity index under data uncertainty," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 6(1), pages 1-20, December.
    7. Rashed Khanjani Shiraz & Adel Hatami-Marbini & Ali Emrouznejad & Hirofumi Fukuyama, 2020. "Chance-constrained cost efficiency in data envelopment analysis model with random inputs and outputs," Operational Research, Springer, vol. 20(3), pages 1863-1898, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sahoo, Biresh K. & Mehdiloozad, Mahmood & Tone, Kaoru, 2014. "Cost, revenue and profit efficiency measurement in DEA: A directional distance function approach," European Journal of Operational Research, Elsevier, vol. 237(3), pages 921-931.
    2. Rashed Khanjani Shiraz & Adel Hatami-Marbini & Ali Emrouznejad & Hirofumi Fukuyama, 2020. "Chance-constrained cost efficiency in data envelopment analysis model with random inputs and outputs," Operational Research, Springer, vol. 20(3), pages 1863-1898, September.
    3. Lei Fang & Hecheng Li, 2013. "Lower bound of cost efficiency measure in DEA with incomplete price information," Journal of Productivity Analysis, Springer, vol. 40(2), pages 219-226, October.
    4. Blancard, Stéphane & Martin, Elsa, 2014. "Energy efficiency measurement in agriculture with imprecise energy content information," Energy Policy, Elsevier, vol. 66(C), pages 198-208.
    5. Amin Mostafaee & Milan Hladík, 2020. "Optimal value bounds in interval fractional linear programming and revenue efficiency measuring," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 28(3), pages 963-981, September.
    6. Hatami-Marbini, Adel & Arabmaldar, Aliasghar, 2021. "Robustness of Farrell cost efficiency measurement under data perturbations: Evidence from a US manufacturing application," European Journal of Operational Research, Elsevier, vol. 295(2), pages 604-620.
    7. Mostafaee, A. & Saljooghi, F.H., 2010. "Cost efficiency measures in data envelopment analysis with data uncertainty," European Journal of Operational Research, Elsevier, vol. 202(2), pages 595-603, April.
    8. Fang, Lei & Li, Hecheng, 2015. "Cost efficiency in data envelopment analysis under the law of one price," European Journal of Operational Research, Elsevier, vol. 240(2), pages 488-492.
    9. Badunenko, Oleg & Fritsch, Michael & Stephan, Andreas, 2008. "Allocative efficiency measurement revisited--Do we really need input prices?," Economic Modelling, Elsevier, vol. 25(5), pages 1093-1109, September.
    10. Camanho, A. S. & Dyson, R. G., 2005. "Cost efficiency measurement with price uncertainty: a DEA application to bank branch assessments," European Journal of Operational Research, Elsevier, vol. 161(2), pages 432-446, March.
    11. Samoilenko, Sergey & Osei-Bryson, Kweku-Muata, 2010. "Determining sources of relative inefficiency in heterogeneous samples: Methodology using Cluster Analysis, DEA and Neural Networks," European Journal of Operational Research, Elsevier, vol. 206(2), pages 479-487, October.
    12. Kerstens, Kristiaan & Sadeghi, Jafar & Toloo, Mehdi & Van de Woestyne, Ignace, 2022. "Procedures for ranking technical and cost efficient units: With a focus on nonconvexity," European Journal of Operational Research, Elsevier, vol. 300(1), pages 269-281.
    13. Wettemann, Patrick Johannes Christopher & Latacz-Lohmann, Uwe, 2017. "An efficiency-based concept to assess potential cost and greenhouse gas savings on German dairy farms," Agricultural Systems, Elsevier, vol. 152(C), pages 27-37.
    14. Giokas, Dimitris I., 2008. "Assessing the efficiency in operations of a large Greek bank branch network adopting different economic behaviors," Economic Modelling, Elsevier, vol. 25(3), pages 559-574, May.
    15. Liu, John S. & Lu, Louis Y.Y. & Lu, Wen-Min, 2016. "Research fronts in data envelopment analysis," Omega, Elsevier, vol. 58(C), pages 33-45.
    16. David Ennen & Irem Batool, 2017. "Airport Efficiency in Pakistan - A Data Envelopment Analysis with Weight Restrictions," Working Papers 25, Institute of Transport Economics, University of Muenster.
    17. Kuosmanen, Timo & Cherchye, Laurens & Sipilainen, Timo, 2006. "The law of one price in data envelopment analysis: Restricting weight flexibility across firms," European Journal of Operational Research, Elsevier, vol. 170(3), pages 735-757, May.
    18. Berger, Allen N. & Humphrey, David B., 1997. "Efficiency of financial institutions: International survey and directions for future research," European Journal of Operational Research, Elsevier, vol. 98(2), pages 175-212, April.
    19. Asmild, Mette & Paradi, Joseph C. & Reese, David N. & Tam, Fai, 2007. "Measuring overall efficiency and effectiveness using DEA," European Journal of Operational Research, Elsevier, vol. 178(1), pages 305-321, April.
    20. E. Grigoroudis & E. Tsitsiridi & C. Zopounidis, 2013. "Linking customer satisfaction, employee appraisal, and business performance: an evaluation methodology in the banking sector," Annals of Operations Research, Springer, vol. 205(1), pages 5-27, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:220:y:2012:i:2:p:588-590. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.