Data Envelopment Analysis in Stata
In this presentation, we present a procedure and an illustrative application of a user-written Data Envelopment Analysis (DEA) program in Stata. DEA is a linear programming method for assessing the efficiency and productivity of units and a popular managerial tool for measuring performance of organizations. 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 program in Stata will allow DEA users to easily access the Stata system and to conduct not only the standard optimization procedure but also more extended managerial analysis. The Mata programming, an extension of the DEA program code developed in the Stata programming language, will be discussed for the cases where the data capacity matters. We will also discuss the returns to scale options in DEA. Unfortunately, to date no DEA options are available in Stata, but an SFA model is available. The user-written DEA approach in Stata will provide some possible future extensions of Stata programming in DEA.
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