IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v38y2010i5p371-382.html
   My bibliography  Save this article

A modified DEA model to estimate the importance of objectives with an application to agricultural economics

Author

Listed:
  • André, Francisco J.
  • Herrero, Inés
  • Riesgo, Laura

Abstract

This paper demonstrates a connection between data envelopment analysis (DEA) and a non-interactive elicitation method to estimate the weights of objectives for decision-makers in a multiple attribute approach. This connection gives rise to a modified DEA model that allows us to estimate not only efficiency measures but also preference weights by radially projecting each unit onto a linear combination of the elements of the payoff matrix (which is obtained by standard multicriteria methods). For users of multiple attribute decision analysis the basic contribution of this paper is a new interpretation in terms of efficiency of the non-interactive methodology employed to estimate weights in a multicriteria approach. We also propose a modified procedure to calculate an efficient payoff matrix and a procedure to estimate weights through a radial projection rather than a distance minimization. For DEA users, we provide a modified DEA procedure to calculate preference weights and efficiency measures that does not depend on any observations in the dataset. This methodology has been applied to an agricultural case study in Spain.

Suggested Citation

  • André, Francisco J. & Herrero, Inés & Riesgo, Laura, 2010. "A modified DEA model to estimate the importance of objectives with an application to agricultural economics," Omega, Elsevier, vol. 38(5), pages 371-382, October.
  • Handle: RePEc:eee:jomega:v:38:y:2010:i:5:p:371-382
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305-0483(09)00071-1
    Download Restriction: Full text for ScienceDirect subscribers only

    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. Tarja Joro & Pekka Korhonen & Jyrki Wallenius, 1998. "Structural Comparison of Data Envelopment Analysis and Multiple Objective Linear Programming," Management Science, INFORMS, vol. 44(7), pages 962-970, July.
    2. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, March.
    3. Cook, Wade D. & Seiford, Lawrence M. & Zhu, Joe, 2004. "Models for performance benchmarking: measuring the effect of e-business activities on banking performance," Omega, Elsevier, vol. 32(4), pages 313-322, August.
    4. Arriaza Balmón, Manuel & Gomez-Limon, Jose A. & Upton, Martin, 2002. "Local water markets for irrigation in southern Spain: A multicriteria approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(1), March.
    5. Doyle, J & Green, R, 1993. "Data envelopment analysis and multiple criteria decision making," Omega, Elsevier, vol. 21(6), pages 713-715, November.
    6. Francisco, Sergio R. & Ali, Mubarik, 2006. "Resource allocation tradeoffs in Manila's peri-urban vegetable production systems: An application of multiple objective programming," Agricultural Systems, Elsevier, vol. 87(2), pages 147-168, February.
    7. Solano, C. & Leon, H. & Perez, E. & Herrero, M., 2001. "Characterising objective profiles of Costa Rican dairy farmers," Agricultural Systems, Elsevier, vol. 67(3), pages 153-179, March.
    8. Berbel, J. & Rodriguez-Ocana, A., 1998. "An MCDM approach to production analysis: An application to irrigated farms in Southern Spain," European Journal of Operational Research, Elsevier, vol. 107(1), pages 108-118, May.
    9. Smith, Donnie & Capstick, Daniel F., 1976. "Establishing Priorities Among Multiple Management Goals," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 8(02), December.
    10. 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.
    11. Joyce Willock & Ian J. Deary & Gareth Edwards-Jones & Gavin J. Gibson & Murray J. McGregor & Alistair Sutherland & J. Barry Dent & Oliver Morgan & Robert Grieve, 1999. "The Role of Attitudes and Objectives in Farmer Decision Making: Business and Environmentally-Oriented Behaviour in Scotland," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 286-303.
    12. Bougnol, M.-L. & Dulá, J.H. & Estellita Lins, M.P. & Moreira da Silva, A.C., 2010. "Enhancing standard performance practices with DEA," Omega, Elsevier, vol. 38(1-2), pages 33-45, February.
    13. André, Francisco J., 2009. "Indirect elicitation of non-linear multi-attribute utility functions. A dual procedure combined with DEA," Omega, Elsevier, vol. 37(4), pages 883-895, August.
    14. Ulucan, AydIn & BarIs AtIcI, KazIm, 2010. "Efficiency evaluations with context-dependent and measure-specific data envelopment approaches: An application in a World Bank supported project," Omega, Elsevier, vol. 38(1-2), pages 68-83, February.
    15. Qureshi, M. E. & Harrison, S. R. & Wegener, M. K., 1999. "Validation of multicriteria analysis models," Agricultural Systems, Elsevier, vol. 62(2), pages 105-116, November.
    16. Stewart, TJ, 1994. "Data envelopment analysis and multiple criteria decision making: A response," Omega, Elsevier, vol. 22(2), pages 205-206, March.
    17. Smith, Donnie & Capstick, Daniel F., 1976. "Establishing Priorities Among Multiple Management Goals," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 8(02), pages 37-43, December.
    18. Gomez-Limon, J. A. & Berbel, J., 2000. "Multicriteria analysis of derived water demand functions: a Spanish case study," Agricultural Systems, Elsevier, vol. 63(1), pages 49-72, January.
    19. John W. Cary & Bill Holmes, 1982. "Relationships Among Farmers' Goals And Farm Adjustment Strategies: Some Empirics Of A Multidimensional Approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 26(2), pages 114-130, August.
    20. 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.
    21. 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.
    22. Gomez-Limon, Jose A. & Arriaza, Manuel & Riesgo, Laura, 2003. "An MCDM analysis of agricultural risk aversion," European Journal of Operational Research, Elsevier, vol. 151(3), pages 569-585, December.
    23. Scheel, Holger, 2001. "Undesirable outputs in efficiency valuations," European Journal of Operational Research, Elsevier, vol. 132(2), pages 400-410, July.
    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. Chen, Yao & Du, Juan & Huo, Jiazhen, 2013. "Super-efficiency based on a modified directional distance function," Omega, Elsevier, vol. 41(3), pages 621-625.
    2. Jorge Guardiola & Andrés J. Picazo-Tadeo, 2013. "Weighting life domains with Data Envelopment Analysis," Working Papers 1311, Department of Applied Economics II, Universidad de Valencia.
    3. Abbas Sheikh Aboumasoudi & Saeed Mirzamohammadi Ahmad Makui & Ahmad Makui & Jolanta Tamošaitienė, 2016. "Development of Network-Ranking Model to Create the Best Production Line Value Chain: A Case Study in Textile Industry," ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, Faculty of Economic Cybernetics, Statistics and Informatics, vol. 50(1), pages 215-234.
    4. Fallah-Fini, Saeideh & Triantis, Konstantinos & Rahmandad, Hazhir & de la Garza, Jesus M., 2015. "Measuring dynamic efficiency of highway maintenance operations," Omega, Elsevier, vol. 50(C), pages 18-28.
    5. Hatami-Marbini, Adel & Tavana, Madjid, 2011. "An extension of the Electre I method for group decision-making under a fuzzy environment," Omega, Elsevier, vol. 39(4), pages 373-386, August.
    6. Hinojosa, M.A. & Mármol, A.M., 2011. "Axial solutions for multiple objective linear problems. An application to target setting in DEA models with preferences," Omega, Elsevier, vol. 39(2), pages 159-167, April.
    7. Hang Yin & Qing He & Tao Guo & Jianxin Zhu & Botao Yu, 2014. "Measurement Method and Empirical Research on the Sustainable Development Capability of a Regional Industrial System Based on Ecological Niche Theory in China," Sustainability, MDPI, Open Access Journal, vol. 6(12), pages 1-25, November.
    8. repec:gam:jsusta:v:9:y:2017:i:8:p:1316-:d:106256 is not listed on IDEAS
    9. Jorge Guardiola & Andrés Picazo-Tadeo, 2014. "Building Weighted-Domain Composite Indices of Life Satisfaction with Data Envelopment Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 117(1), pages 257-274, May.
    10. Ernest Reig‐Martínez & José A. Gómez‐Limón & Andrés J. Picazo‐Tadeo, 2011. "Ranking farms with a composite indicator of sustainability," Agricultural Economics, International Association of Agricultural Economists, vol. 42(5), pages 561-575, September.
    11. Cristina Bernini & Andrea Guizzardi & Giovanni Angelini, 2013. "DEA-Like Model and Common Weights Approach for the Construction of a Subjective Community Well-Being Indicator," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(2), pages 405-424, November.
    12. Gómez-Limón, José A. & Gutiérrez-Martín, Carlos & Riesgo, Laura, 2016. "Modeling at farm level: Positive Multi-Attribute Utility Programming," Omega, Elsevier, vol. 65(C), pages 17-27.
    13. Xu, Jiuping & Li, Zongmin, 2012. "A review on Ecological Engineering based Engineering Management," Omega, Elsevier, vol. 40(3), pages 368-378.
    14. Samoilenko, Sergey & Osei-Bryson, Kweku-Muata, 2013. "Using Data Envelopment Analysis (DEA) for monitoring efficiency-based performance of productivity-driven organizations: Design and implementation of a decision support system," Omega, Elsevier, vol. 41(1), pages 131-142.
    15. Li, Yongjun & Chen, Yao & Liang, Liang & Xie, Jianhui, 2012. "DEA models for extended two-stage network structures," Omega, Elsevier, vol. 40(5), pages 611-618.
    16. Liu, Wenbin & Zhou, Zhongbao & Liu, Debin & Xiao, Helu, 2015. "Estimation of portfolio efficiency via DEA," Omega, Elsevier, vol. 52(C), pages 107-118.
    17. Woodside-Oriakhi, M. & Lucas, C. & Beasley, J.E., 2013. "Portfolio rebalancing with an investment horizon and transaction costs," Omega, Elsevier, vol. 41(2), pages 406-420.

    More about this item

    Keywords

    Multicriteria Goal programming DEA;

    Statistics

    Access and download statistics

    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:jomega:v:38:y:2010:i:5:p:371-382. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.