Use of ratios in data envelopment analysis
It is often necessary to use ratios rather than absolute numbers as inputs and outputs in data envelopment analysis. This may be necessary in order to reflect accurately the underlying production function, or because of the nature of the data available. This note explains why the Banker, Charnes and Cooper formulation of DEA must be used when a ratio model is deployed.
Volume (Year): 10 (2003)
Issue (Month): 11 ()
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- 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.
- 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.
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