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Cost-efficiency under inter-temporal dependence

Author

Listed:
  • Khosro Soleimani-Chamkhorami

    (Islamic Azad university)

  • Saeid Ghobadi

    (Islamic Azad University)

Abstract

One method for evaluating cost-efficiency of commercial firms is data envelopment analysis. In the real world, data have a time dependency that also affects the cost-efficiency calculation. This article introduces a new model for measuring cost-efficiency under inter-temporal dependency in an assessment window. In the proposed approach, there is a reserve capital for the assessment window that is considered as the input of this period, and at any time of the window, a certain amount of capital is used. For practical application, the proposed model is applied to a real dataset of branches of an Iranian commercial bank to evaluate cost-efficiency under inter-temporal dependency.

Suggested Citation

  • Khosro Soleimani-Chamkhorami & Saeid Ghobadi, 2021. "Cost-efficiency under inter-temporal dependence," Annals of Operations Research, Springer, vol. 302(1), pages 289-312, July.
    • Handle: RePEc:spr:annopr:v:302:y:2021:i:1:d:10.1007_s10479-021-03989-2
    DOI: 10.1007/s10479-021-03989-2
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