A note on efficiency decomposition in two-stage data envelopment analysis

Shiang-Tai Liu

European Journal of Operational Research, 2011, vol. 212, issue 3, 606-608

Abstract: Data envelopment analysis (DEA) is a useful tool of efficiency measurement for firms and organizations. Kao and Hwang (2008) take into account the series relationship of the two sub-processes in a two-stage production process, and the overall efficiency of the whole process is the product of the efficiencies of the two sub-processes. To find the largest efficiency of one sub-process while maintaining the maximum overall efficiency of the whole process, Kao and Hwang (2008) propose a solution procedure to accomplish this purpose. Nevertheless, one needs to know the overall efficiency of the whole process before calculating the sub-process efficiency. In this note, we propose a method that is able to find the sub-process and overall efficiencies simultaneously.

Keywords: Data; envelopment; analysis; Efficiency; Decomposition; Two-stage (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:212:y:2011:i:3:p:606-608

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