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Impact Assessment Of Input Omission On Dea

Author

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  • JOHN RUGGIERO

    (Department of Economics and Finance, School of Business Administration, University of Dayton, Dayton, OH 45469-2251, USA)

Abstract

It is well known in the Data Envelopment Analysis literature that proper variable selection is necessary for the reliable measurement of efficiency. Omitting production relevant variables and/or including irrelevant variables will lead to biased measurement. It is also known that the sample size needs to be large relative to the number of inputs and outputs to prevent classification of efficiency by default. In some empirical settings the number of potential relevant variables is large. Careful selection of an appropriate set of variables is necessary for reliable efficiency measurement. This paper looks at the issue of input selection and uses simulation analysis to develop statistical procedures to provide guidelines for input selection.

Suggested Citation

  • John Ruggiero, 2005. "Impact Assessment Of Input Omission On Dea," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 4(03), pages 359-368.
    • Handle: RePEc:wsi:ijitdm:v:04:y:2005:i:03:n:s021962200500160x
    DOI: 10.1142/S021962200500160X
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