Enhancing the inclusion of non-discretionary inputs in DEA

J M Cordero-Ferrera (), F Pedraja-Chaparro and Daniel Santín
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J M Cordero-Ferrera: University of Extremadura
F Pedraja-Chaparro: University of Extremadura

Journal of the Operational Research Society, 2010, vol. 61, issue 4, 574-584

Abstract: Abstract The aim of this paper is to provide an alternative approach for estimating efficiency when a set of decision-making units uses non-discretionary inputs in the productive process. To test the influence of these variables, our proposal uses a multi-stage approach based on Tobit regressions. In order to avoid potential bias, a bootstrap procedure is used to estimate these regressions. This methodology allows enhancing other models previously proposed to introduce non-controllable inputs in data envelopment analysis (DEA) overcoming, thus, some of their main shortcomings. We illustrate our framework with an empirical application on Spanish high schools where non-controllable factors play a major role to explain educational achievements.

Keywords: data envelopment analysis; bootstrap; education (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (9)

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DOI: 10.1057/jors.2008.189

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