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An epsilon-based measure of efficiency in DEA revisited -A third pole of technical efficiency


  • Kaoru Tone

    (National Graduate Institute for Policy Studies)

  • Miki Tsutsui

    (Central Research Institute of Electric Power Industry)


In DEA, we have two measures of technical efficiency with different characteristics: radial and non-radial. In this paper we compile them into a composite model called “epsilon-based measure (EBM).” For this purpose we introduce two parameters which connect radial and non-radial models. These two parameters are obtained from the newly defined affinity index between inputs or outputs along with principal component analysis on the affinity matrix. Thus, EBM takes into account diversity of input/output data and their relative importance for measuring technical efficiency.

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  • Kaoru Tone & Miki Tsutsui, 2010. "An epsilon-based measure of efficiency in DEA revisited -A third pole of technical efficiency," GRIPS Discussion Papers 09-21, National Graduate Institute for Policy Studies.
  • Handle: RePEc:ngi:dpaper:09-21

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    Cited by:

    1. A. M. Aldanondo & V. L. Casasnovas, 2015. "Input aggregation bias in technical efficiency with multiple criteria analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 22(6), pages 430-435, April.
    2. repec:eee:transa:v:100:y:2017:i:c:p:121-134 is not listed on IDEAS
    3. Gómez-Calvet, Roberto & Conesa, David & Gómez-Calvet, Ana Rosa & Tortosa-Ausina, Emili, 2014. "Energy efficiency in the European Union: What can be learned from the joint application of directional distance functions and slacks-based measures?," Applied Energy, Elsevier, vol. 132(C), pages 137-154.
    4. Cheng, Gang & Qian, Zhenhua, 2011. "An epsilon-based measure of efficiency in DEA - An alternative method for the affinity index," MPRA Paper 41680, University Library of Munich, Germany, revised 06 Nov 2011.

    More about this item


    Data envelopment analysis; Radial; Non-radial; CCR; SBM; EBM; Principal component analysis;

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