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

Kaoru Tone and Miki Tsutsui
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Kaoru Tone: National Graduate Institute for Policy Studies
Miki Tsutsui: Central Research Institute of Electric Power Industry

No 09-21, GRIPS Discussion Papers from National Graduate Institute for Policy Studies

Abstract: 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.

Keywords: Data envelopment analysis; Radial; Non-radial; CCR; SBM; EBM; Principal component analysis (search for similar items in EconPapers)
Pages: 26 pages
Date: 2010-02
New Economics Papers: this item is included in nep-eff
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Citations: View citations in EconPapers (51)

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Persistent link: https://EconPapers.repec.org/RePEc:ngi:dpaper:09-21

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