Far out or alone in the crowd: Classification of selfevaluators in DEA

Dag Fjeld Edvardsen, Finn R. Føsund () and Sverre Kittelsen
Additional contact information
Dag Fjeld Edvardsen: The Norwegian Building Research Institute, Norway
Finn R. Føsund: Department of Economics, Postal: University of Oslo, P O Box 1095 Blindern, N-0317 Oslo, Norway

No 2003:7, HERO Online Working Paper Series from University of Oslo, Health Economics Research Programme

Abstract: The units found strongly efficient in DEA studies on efficiency can be divided into self-evaluators and active peers, depending on whether the peers are referencing any inefficient units or not. The contribution of the paper starts with subdividing the selfevaluators into interior and exterior ones. The exterior self-evaluators are efficient “by default”; there is no firm evidence from observations for the classification. These units should therefore not been regarded as efficient, and be removed from the observations on efficiency scores when performing a two-stage analysis of explaining the distribution of the scores. A method for classifying self-evaluators based on the additive DEA model is developed. The application to municipal nursing- and home care services of Norway shows significant effects of removing exterior self-evaluators from the data when doing a two-stage analysis.

Keywords: Self-evaluator; interior and exterior self-evaluator; DEA; efficiency; referencing zone; nursing homes (search for similar items in EconPapers)
JEL-codes: C44 C61 D24 I19 L32 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2009-06-21
New Economics Papers: this item is included in nep-eff and nep-hea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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