Use of ratios in data envelopment analysis

Bruce Hollingsworth and P. Smith

Applied Economics Letters, 2003, vol. 10, issue 11, 733-735

Abstract: It is often necessary to use ratios rather than absolute numbers as inputs and outputs in data envelopment analysis. This may be necessary in order to reflect accurately the underlying production function, or because of the nature of the data available. This note explains why the Banker, Charnes and Cooper formulation of DEA must be used when a ratio model is deployed.

Date: 2003
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DOI: 10.1080/1350485032000133381

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