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Network DEA

In: Modeling Data Irregularities and Structural Complexities in Data Envelopment Analysis

Author

Listed:
  • Rolf Färe

    (Oregon State University)

  • Shawna Grosskopf

    (Oregon State University)

  • Gerald Whittaker

    (USDA)

Abstract

This chapter describes network DEA models, where a network consists of sub-technologies. A DEA model typically describes a technology to a level of abstraction necessary for the analyst’s purpose, but leaves out a description of the sub-technologies that make up the internal functions of the technology. These sub-technologies are usually treated as a “black box”, i.e., there is no information about what happens inside them. The specification of the sub-technologies enables the explicit examination of input allocation and intermediate products that together form the production process. The combination of sub-technologies into networks provides a method of analyzing problems that the traditional DEA models cannot address. We apply network DEA methods to three examples; a static production technology with intermediate products, a dynamic production technology, and technology adoption (or embodied technological change). The data and GAMS code for two examples of network DEA models are listed in appendices.

Suggested Citation

  • Rolf Färe & Shawna Grosskopf & Gerald Whittaker, 2007. "Network DEA," Springer Books, in: Joe Zhu & Wade D. Cook (ed.), Modeling Data Irregularities and Structural Complexities in Data Envelopment Analysis, chapter 0, pages 209-240, Springer.
    • Handle: RePEc:spr:sprchp:978-0-387-71607-7_12
    DOI: 10.1007/978-0-387-71607-7_12
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