IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v244y2015i1p201-209.html
   My bibliography  Save this article

Consistent weight restrictions in data envelopment analysis

Author

Listed:
  • Podinovski, Victor V.
  • Bouzdine-Chameeva, Tatiana

Abstract

It has recently been shown that the incorporation of weight restrictions in models of data envelopment analysis (DEA) may induce free or unlimited production of output vectors in the underlying production technology, which is expressly disallowed by standard production assumptions. This effect may either result in an infeasible multiplier model with weight restrictions or remain undetected by normal efficiency computations. The latter is potentially troubling because even if the efficiency scores appear unproblematic, they may still be assessed in an erroneous model of production technology. Two approaches to testing the existence of free and unlimited production have recently been developed: computational and analytical. While the latter is more straightforward than the former, its application is limited only to unlinked weight restrictions. In this paper we develop several new analytical conditions for a larger class of unlinked and linked weight restrictions.

Suggested Citation

  • Podinovski, Victor V. & Bouzdine-Chameeva, Tatiana, 2015. "Consistent weight restrictions in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 244(1), pages 201-209.
    • Handle: RePEc:eee:ejores:v:244:y:2015:i:1:p:201-209
    DOI: 10.1016/j.ejor.2015.01.037
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221715000570
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2015.01.037?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. V V Podinovski, 2004. "Production trade-offs and weight restrictions in data envelopment analysis," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(12), pages 1311-1322, December.
    2. Podinovski, V.V., 2007. "Computation of efficient targets in DEA models with production trade-offs and weight restrictions," European Journal of Operational Research, Elsevier, vol. 181(2), pages 586-591, September.
    3. S P Santos & C A F Amado & J R Rosado, 2011. "Formative evaluation of electricity distribution utilities using data envelopment analysis," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(7), pages 1298-1319, July.
    4. Khalili, M. & Camanho, A.S. & Portela, M.C.A.S. & Alirezaee, M.R., 2010. "The measurement of relative efficiency using data envelopment analysis with assurance regions that link inputs and outputs," European Journal of Operational Research, Elsevier, vol. 203(3), pages 761-770, June.
    5. V V Podinovski, 2007. "Improving data envelopment analysis by the use of production trade-offs," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(10), pages 1261-1270, October.
    6. 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.
    7. R. Allen & A. Athanassopoulos & R.G. Dyson & E. Thanassoulis, 1997. "Weights restrictions and value judgements in Data Envelopment Analysis: Evolution, development and future directions," Annals of Operations Research, Springer, vol. 73(0), pages 13-34, October.
    8. R. G. Chambers & Y. Chung & R. Färe, 1998. "Profit, Directional Distance Functions, and Nerlovian Efficiency," Journal of Optimization Theory and Applications, Springer, vol. 98(2), pages 351-364, August.
    9. Victor V. Podinovski & Tatiana Bouzdine-Chameeva, 2013. "Weight Restrictions and Free Production in Data Envelopment Analysis," Operations Research, INFORMS, vol. 61(2), pages 426-437, April.
    10. 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.
    11. Thompson, Russell G. & Langemeier, Larry N. & Lee, Chih-Tah & Lee, Euntaik & Thrall, Robert M., 1990. "The role of multiplier bounds in efficiency analysis with application to Kansas farming," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 93-108.
    12. Thanassoulis, E. & Boussofiane, A. & Dyson, R. G., 1995. "Exploring output quality targets in the provision of perinatal care in England using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 80(3), pages 588-607, February.
    13. V V Podinovski, 2005. "The explicit role of weight bounds in models of data envelopment analysis," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(12), pages 1408-1418, December.
    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. Podinovski, Victor V., 2016. "Optimal weights in DEA models with weight restrictions," European Journal of Operational Research, Elsevier, vol. 254(3), pages 916-924.
    2. Podinovski, Victor V. & Bouzdine-Chameeva, Tatiana, 2017. "Solving DEA models in a single optimization stage: Can the non-Archimedean infinitesimal be replaced by a small finite epsilon?," European Journal of Operational Research, Elsevier, vol. 257(2), pages 412-419.
    3. Victor V. Podinovski & Wan Rohaida Wan Husain, 2017. "The hybrid returns-to-scale model and its extension by production trade-offs: an application to the efficiency assessment of public universities in Malaysia," Annals of Operations Research, Springer, vol. 250(1), pages 65-84, March.
    4. Hosein Arman & Abdollah Hadi‐Vencheh, 2021. "Restricting the relative weights in data envelopment analysis," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 4127-4136, July.
    5. Andreas Dellnitz & Madjid Tavana & Rajiv Banker, 2023. "A novel median-based optimization model for eco-efficiency assessment in data envelopment analysis," Annals of Operations Research, Springer, vol. 322(2), pages 661-690, March.
    6. Diogo Cunha Ferreira & Rui Cunha Marques, 2020. "A step forward on order-α robust nonparametric method: inclusion of weight restrictions, convexity and non-variable returns to scale," Operational Research, Springer, vol. 20(2), pages 1011-1046, June.
    7. Podinovski, Victor V., 2017. "Returns to scale in convex production technologies," European Journal of Operational Research, Elsevier, vol. 258(3), pages 970-982.
    8. Podinovski, Victor V. & Bouzdine-Chameeva, Tatiana, 2016. "On single-stage DEA models with weight restrictions," European Journal of Operational Research, Elsevier, vol. 248(3), pages 1044-1050.
    9. Diogo Cunha Ferreira & Rui Cunha Marques & Alexandre Morais Nunes, 2021. "Pay for performance in health care: a new best practice tariff-based tool using a log-linear piecewise frontier function and a dual–primal approach for unique solutions," Operational Research, Springer, vol. 21(3), pages 2101-2146, September.
    10. Andreas Dellnitz & Elmar Reucher & Andreas Kleine, 2021. "Efficiency evaluation in data envelopment analysis using strong defining hyperplanes," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 43(2), pages 441-465, June.
    11. Roets, Bart & Verschelde, Marijn & Christiaens, Johan, 2018. "Multi-output efficiency and operational safety: An analysis of railway traffic control centre performance," European Journal of Operational Research, Elsevier, vol. 271(1), pages 224-237.

    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. Podinovski, Victor V. & Bouzdine-Chameeva, Tatiana, 2016. "On single-stage DEA models with weight restrictions," European Journal of Operational Research, Elsevier, vol. 248(3), pages 1044-1050.
    2. Victor V. Podinovski & Wan Rohaida Wan Husain, 2017. "The hybrid returns-to-scale model and its extension by production trade-offs: an application to the efficiency assessment of public universities in Malaysia," Annals of Operations Research, Springer, vol. 250(1), pages 65-84, March.
    3. Podinovski, Victor V., 2016. "Optimal weights in DEA models with weight restrictions," European Journal of Operational Research, Elsevier, vol. 254(3), pages 916-924.
    4. Podinovski, Victor V., 2017. "Returns to scale in convex production technologies," European Journal of Operational Research, Elsevier, vol. 258(3), pages 970-982.
    5. Khalili, M. & Camanho, A.S. & Portela, M.C.A.S. & Alirezaee, M.R., 2010. "The measurement of relative efficiency using data envelopment analysis with assurance regions that link inputs and outputs," European Journal of Operational Research, Elsevier, vol. 203(3), pages 761-770, June.
    6. Podinovski, Victor V. & Bouzdine-Chameeva, Tatiana, 2019. "Cone extensions of polyhedral production technologies," European Journal of Operational Research, Elsevier, vol. 276(2), pages 736-743.
    7. Finn Førsund, 2013. "Weight restrictions in DEA: misplaced emphasis?," Journal of Productivity Analysis, Springer, vol. 40(3), pages 271-283, December.
    8. Martin Bod’a & Martin Dlouhý & Emília Zimková, 2018. "Unobservable or omitted production variables in data envelopment analysis through unit-specific production trade-offs," 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. 26(4), pages 813-846, December.
    9. António J. R. Santos & Sérgio P. Santos & Carla A. F. Amado & Efigénio L. Rebelo & Júlio C. Mendes, 2020. "Labor inspectorates’ efficiency and effectiveness assessment as a learning path to improve work-related accident prevention," Annals of Operations Research, Springer, vol. 288(2), pages 609-651, May.
    10. Victor V. Podinovski & Tatiana Bouzdine-Chameeva, 2013. "Weight Restrictions and Free Production in Data Envelopment Analysis," Operations Research, INFORMS, vol. 61(2), pages 426-437, April.
    11. Roets, Bart & Verschelde, Marijn & Christiaens, Johan, 2018. "Multi-output efficiency and operational safety: An analysis of railway traffic control centre performance," European Journal of Operational Research, Elsevier, vol. 271(1), pages 224-237.
    12. Panagiotis Ravanos & Giannis Karagiannis, 2022. "On VEA, Production Trade-offs and Weight Restrictions," Discussion Paper Series 2022_04, Department of Economics, University of Macedonia, revised Jun 2022.
    13. Somayeh Razipour-GhalehJough & Farhad Hosseinzadeh Lotfi & Gholamreza Jahanshahloo & Mohsen Rostamy-malkhalifeh & Hamid Sharafi, 2020. "Finding closest target for bank branches in the presence of weight restrictions using data envelopment analysis," Annals of Operations Research, Springer, vol. 288(2), pages 755-787, May.
    14. Sickles, Robin C. & Song, Wonho & Zelenyuk, Valentin, 2018. "Econometric Analysis of Productivity: Theory and Implementation in R," Working Papers 18-008, Rice University, Department of Economics.
    15. Liesiö, Juuso & Andelmin, Juho & Salo, Ahti, 2020. "Efficient allocation of resources to a portfolio of decision making units," European Journal of Operational Research, Elsevier, vol. 286(2), pages 619-636.
    16. Podinovski, Victor V., 2019. "Direct estimation of marginal characteristics of nonparametric production frontiers in the presence of undesirable outputs," European Journal of Operational Research, Elsevier, vol. 279(1), pages 258-276.
    17. Podinovski, Victor V. & Bouzdine-Chameeva, Tatiana, 2017. "Solving DEA models in a single optimization stage: Can the non-Archimedean infinitesimal be replaced by a small finite epsilon?," European Journal of Operational Research, Elsevier, vol. 257(2), pages 412-419.
    18. Ebrahimi, Bohlool & Dhamotharan, Lalitha & Ghasemi, Mohammad Reza & Charles, Vincent, 2022. "A cross-inefficiency approach based on the deviation variables framework," Omega, Elsevier, vol. 111(C).
    19. Karkazis, John & Thanassoulis, Emmanuel, 1998. "Assessing the effectiveness of regional development policies in Northern Greece using data envelopment analysis," Socio-Economic Planning Sciences, Elsevier, vol. 32(2), pages 123-137, June.
    20. Lins, Marcos Pereira Estellita & Sollero, Maria Karla Vervloet & Caloba, Guilherme Marques & da Silva, Angela Cristina Moreira, 2007. "Integrating the regulatory and utility firm perspectives, when measuring the efficiency of electricity distribution," European Journal of Operational Research, Elsevier, vol. 181(3), pages 1413-1424, September.

    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:244:y:2015:i:1:p:201-209. 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.