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

Kaoru Tone and Miki Tsutsui

European Journal of Operational Research, 2010, vol. 207, issue 3, 1554-1563

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; CCR; SBM; EBM; Principal; component; analysis (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (162)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:207:y:2010:i:3:p:1554-1563

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