Additive super-efficiency in integer-valued data envelopment analysis

Juan Du, Chien-Ming Chen, Yao Chen, Wade D. Cook and Joe Zhu

European Journal of Operational Research, 2012, vol. 218, issue 1, 186-192

Abstract: Conventional data envelopment analysis (DEA) methods assume that input and output variables are continuous. However, in many real managerial cases, some inputs and/or outputs can only take integer values. Simply rounding the performance targets to the nearest integers can lead to misleading solutions and efficiency evaluation. Addressing this kind of integer-valued data, the current paper proposes models that deal directly with slacks to calculate efficiency and super-efficiency scores when integer values are present. Compared with standard radial models, additive (super-efficiency) models demonstrate higher discrimination power among decision making units, especially for integer-valued data. We use an empirical application in early-stage ventures to illustrate our approach.

Keywords: Data envelopment analysis; Early-stage ventures; Integer-valued data; Slacks; Super-efficiency (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:218:y:2012:i:1:p:186-192

DOI: 10.1016/j.ejor.2011.10.023

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