# DEA-R: ratio-based comparative efficiency model, its mathematical relation to DEA and its use in applications

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Research output: Contribution to journalArticle

### Abstract

We propose a new mathematical model for efficiency analysis, which combines DEA methodology with an old idea-Ratio Analysis. Our model, called DEA-R, treats all possible ratios "output/input" as outputs within the standard DEA model. Although DEA and DEA-R generate different summary measures for efficiency, the two measures are comparable. Our mathematical and empirical comparisons establish the validity of DEA-R model in its own right. The key advantage of DEA-R over DEA is that it allows effective integration of the model with experts' opinions via flexible restrictive conditions on individual "output/input" pairs. © 2007 Springer Science+Business Media, LLC.

Original language English 33-44 12 Journal of Productivity Analysis 28 1-2 https://doi.org/10.1007/s11123-007-0050-x Published - Oct 2007

### Fingerprint

efficiency
efficiency analysis
DEA model
Mathematical model
expert
methodology
science
Expert opinion
Ratio analysis
Efficiency analysis
Methodology

### Keywords

• DEA
• efficiency
• ratio analysis
• weight restrictions

### Cite this

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title = "DEA-R: ratio-based comparative efficiency model, its mathematical relation to DEA and its use in applications",
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DEA-R : ratio-based comparative efficiency model, its mathematical relation to DEA and its use in applications. / Despic, Ozren; Despic, Mladen; Paradi, Joseph C.

In: Journal of Productivity Analysis, Vol. 28, No. 1-2, 10.2007, p. 33-44.

Research output: Contribution to journalArticle

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T2 - ratio-based comparative efficiency model, its mathematical relation to DEA and its use in applications

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