Improving the Sensitivity of Data Envelopment Analysis by Reducing Dimensionality
Sata Envelopment Analysis (DEA) of efficiency is highly sensitive to the level of aggregation. Generally as the number of inputs and outputs increase, differences in measured relative efficiency across firms decrease. This paper advocates using the EKS index number formula to aggreagte inputs and outputs into a single input and output index prior to using DEA.
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|Date of creation:||1996|
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