TY - JOUR
T1 - Improving envelopment in Data Envelopment Analysis under variable returns to scale
AU - Thanassoulis, Emmanuel
AU - Kortelainen, Mika
AU - Allen, Rachel
PY - 2012/4/1
Y1 - 2012/4/1
N2 - In a Data Envelopment Analysis model, some of the weights used to compute the efficiency of a unit can have zero or negligible value despite of the importance of the corresponding input or output. This paper offers an approach to preventing inputs and outputs from being ignored in the DEA assessment under the multiple input and output VRS environment, building on an approach introduced in Allen and Thanassoulis (2004) for single input multiple output CRS cases. The proposed method is based on the idea of introducing unobserved DMUs created by adjusting input and output levels of certain observed relatively efficient DMUs, in a manner which reflects a combination of technical information and the decision maker's value judgements. In contrast to many alternative techniques used to constrain weights and/or improve envelopment in DEA, this approach allows one to impose local information on production trade-offs, which are in line with the general VRS technology. The suggested procedure is illustrated using real data. © 2011 Elsevier B.V. All rights reserved.
AB - In a Data Envelopment Analysis model, some of the weights used to compute the efficiency of a unit can have zero or negligible value despite of the importance of the corresponding input or output. This paper offers an approach to preventing inputs and outputs from being ignored in the DEA assessment under the multiple input and output VRS environment, building on an approach introduced in Allen and Thanassoulis (2004) for single input multiple output CRS cases. The proposed method is based on the idea of introducing unobserved DMUs created by adjusting input and output levels of certain observed relatively efficient DMUs, in a manner which reflects a combination of technical information and the decision maker's value judgements. In contrast to many alternative techniques used to constrain weights and/or improve envelopment in DEA, this approach allows one to impose local information on production trade-offs, which are in line with the general VRS technology. The suggested procedure is illustrated using real data. © 2011 Elsevier B.V. All rights reserved.
KW - data envelopment analysis
KW - efficiency
KW - productivity
KW - unobserved DMUs
KW - value judgements
UR - http://www.scopus.com/inward/record.url?scp=83955163723&partnerID=8YFLogxK
U2 - 10.1016/j.ejor.2011.10.009
DO - 10.1016/j.ejor.2011.10.009
M3 - Article
SN - 0377-2217
VL - 218
SP - 175
EP - 185
JO - European Journal of Operational Research
JF - European Journal of Operational Research
IS - 1
ER -