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Data envelopment analysis

Author

Listed:
  • Yong-bae Ji

    () (Korea National Defense University)

  • Choonjoo Lee

    () (Korea National Defense University)

Abstract

In this article, we introduce a user-written data envelopment analysis command for Stata. Data envelopment analysis is a linear programming method for assessing the efficiency and productivity of units called decision-making units. Over the last decades, data envelopment analysis has gained considerable attention as a managerial tool for measuring performance of organizations, and it has been used widely for assessing the efficiency of public and private sectors such as banks, airlines, hospitals, universities, defense firms, and manufacturers. The dea com- mand in Stata will allow users to conduct the standard optimization procedure and extended managerial analysis. The dea command developed in this article selects the chosen variables from a Stata data file and constructs a linear programming model based on the selected dea options. Examples are given to illustrate how one could use the code to measure the efficiency of decision-making units. Copyright 2010 by StataCorp LP.

Suggested Citation

  • Yong-bae Ji & Choonjoo Lee, 2010. "Data envelopment analysis," Stata Journal, StataCorp LP, vol. 10(2), pages 267-280, June.
  • Handle: RePEc:tsj:stataj:v:10:y:2010:i:2:p:267-280
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    References listed on IDEAS

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    1. Boussofiane, A. & Dyson, R. G. & Thanassoulis, E., 1991. "Applied data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 52(1), pages 1-15, May.
    2. 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.
    3. 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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    Cited by:

    1. Mitsuhiko Kataoka, 2016. "Interprovincial efficiency differentials in Indonesia's pre-and post-crisis economy," ERSA conference papers ersa16p412, European Regional Science Association.
    2. Joseph Drew & Brian Dollery & Michael A. Kortt, 2016. "Peas in a Pod: Are Efficient Municipalities also Financially Sustainable?," Australian Accounting Review, CPA Australia, vol. 26(2), pages 122-131, June.
    3. Girum Abebe, 2015. "State-inducement Versus Self-initiation: A Comparative Study of Micro and Small Enterprises in Ethiopia," Working Papers 013, Ethiopian Development Research Institute.
    4. González Rodrigues, Maria Del Rosario & Martín-Samper, Rosario & Giuliani, Antonio Carlos, 2015. "Avaliando o progresso da eficiência com tecnologia em uma cadeia de hotéis espanhola," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 55(5), September.
    5. Bonnet, Céline & Schain, Jan Philip, 2017. "An empirical analysis of mergers: Efficiency gains and impact on consumer prices," DICE Discussion Papers 244, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    6. Jaime Bonet-Morón & Jhorland Ayala-García, 2016. "La brecha fiscal territorial en Colombia," Documentos de trabajo sobre Economía Regional y Urbana 235, Banco de la Republica de Colombia.
    7. Jaime Bonet-Morón & Jhorland Ayala-García, 2017. "The Territorial Fiscal Gap in Colombia," Documentos de trabajo sobre Economía Regional y Urbana 251, Banco de la Republica de Colombia.
    8. World Bank, 2016. "Mexico Public Expenditure Review," World Bank Other Operational Studies 25062, The World Bank.
    9. Serhat Yüksel & Shahriyar Mukhtarov & Elvin Mammadov, 2016. "Comparing the Efficiency of Turkish and Azerbaijani Banks: An Application with Data Envelopment Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 6(3), pages 1059-1067.

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