Ranking efficient units in DEA
Yao Chen
Omega, 2004, vol. 32, issue 3, 213-219
Abstract:
Super-efficiency data envelopment analysis (DEA) model can be used in ranking the performance of efficient decision making units (DMUs). Because of the infeasibility problem associated with the super-efficiency DEA model, ranking has been restricted to the model where constant returns to scale and proportional changes in all inputs or all outputs are assumed. In fact, when super-efficiency is used as an efficiency stability measure, infeasibility means the highest super-efficiency. However, if super-efficiency is interpreted as input saving or output surplus achieved by a specific efficient DMU, infeasibility does not necessarily mean the highest super-efficiency. In order to obtain a complete ranking of efficient DMUs when the two assumptions are relaxed, a modified super-efficiency DEA model is proposed to overcome the infeasibility problem and to correctly capture the super-efficiency represented by the input saving or the output surplus. The current paper suggests using both input- and output-oriented super-efficiency models to characterize the super-efficiency when infeasibility occurs. As a result, we can rank the efficient DMUs if infeasibility occurs. The approach is applied to 20 largest Japanese companies and 15 US cities, respectively.
Keywords: Data; envelopment; analysis; (DEA); Efficiency; Infeasibility; Ranking (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (28)
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