Economics at your fingertips  

Pitfalls of decomposition weights in the additive multi-stage DEA model

Sheng Ang and Chien-Ming Chen

Omega, 2016, vol. 58, issue C, 139-153

Abstract: This paper examines limitations of the multi-stage DEA (data envelopment analysis) model in the literature. We focus on the DEA model with additive efficiency decomposition. We create taxonomy for the multi-stage DEA models and show when the decomposition weights can be non-increasing. When the decomposition weight for a stage is deemed reflective of the stage׳s relative importance, this property then implies that upstream stages (regardless the stage efficiency scores) in the model will obtain higher priority in efficiency decomposition. We also find that the non-increasing weights can affect the evaluation of overall and stage efficiency scores. We illustrate our findings through an empirical data set.

Keywords: Data envelopment analysis; Additive efficiency decomposition; Multi-stage serial system (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
https://shop.elsevie ... _01_ooc_1&version=01

Access Statistics for this article

Omega is currently edited by B. Lev

More articles in Omega from Elsevier
Series data maintained by Dana Niculescu ().

Page updated 2017-09-29
Handle: RePEc:eee:jomega:v:58:y:2016:i:c:p:139-153