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The DEA Process, Usages, and Interpretations

In: Data Envelopment Analysis: Theory, Methodology, and Applications

Author

Listed:
  • Abraham Charnes

    (University of Texas at Austin)

  • William W. Cooper

    (University of Texas at Austin)

  • Arie Y. Lewin

    (Duke University)

  • Lawrence M. Seiford

    (University of Massachusetts)

Abstract

As is true with the application of any analytical approach to the “art of reckoning” (Eilon, 1984), the use of data envelopment analysis (DEA) requires knowledge about formulation of models, choice of variables, underlying assumptions, data representation, interpretation of results, and knowledge of limitations. In this chapter, we discuss the process of conducting DEA studies and various uses such as exploratory data analysis, implementation of DEA solutions, and recent model formulations, as well as caveats in applying the method. It should be noted that this chapter represents the accumulated experience of many DEA practitioners and researchers in applying DEA. It represents another concrete example of how the practice of DEA not only shaped the evolution of theoretical and model development but also informed the process and understanding of DEA analysis.

Suggested Citation

  • Abraham Charnes & William W. Cooper & Arie Y. Lewin & Lawrence M. Seiford, 1994. "The DEA Process, Usages, and Interpretations," Springer Books, in: Data Envelopment Analysis: Theory, Methodology, and Applications, chapter 21, pages 425-435, Springer.
    • Handle: RePEc:spr:sprchp:978-94-011-0637-5_21
    DOI: 10.1007/978-94-011-0637-5_21
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