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Multi-dimensional Nondiscretionary Factors in Data Envelopment Analysis: A Slack-Based Measure

Alireza Amirteimoori (), Mahnaz Maghbouli and Sohrab Kordrostami
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Alireza Amirteimoori: Islamic Azad University
Sohrab Kordrostami: Islamic Azad University

Computational Economics, 2016, vol. 48, issue 2, No 2, 223 pages

Abstract: Abstract Various extension using data envelopment analysis (DEA) are available in the literature for performance measurement in public sector. The existence of multiple non- discretionary factors in DEA based public sector models leads to overestimation of the efficiency. This paper proposes a two-step procedure to handle non-discretionary factors in DEA models. In the first step, the multiple non-discretionary factors are transformed into a single artificial factor and then, using a slack-based model the performance assessment is done. To highlight the comparison, an analysis using simulated data is performed. The results show that the proposed two-stage approach is relatively better than existing approaches when we apply the slack based measure of efficiency.

Keywords: Data envelopment analysis; Non-discretionary factors; Production process; Efficiency (search for similar items in EconPapers)
Date: 2016
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DOI: 10.1007/s10614-015-9525-4

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