Bridging radial and non-radial measures of efficiency in DEA

Necmi Avkiran (), Kaoru Tone () and Miki Tsutsui ()

Annals of Operations Research, 2008, vol. 164, issue 1, 127-138

Abstract: Data envelopment analysis (DEA) has been utilized worldwide for measuring efficiencies of banks, telecommunications, electric utilities and so forth. Yet, the existing models have some well-known shortcomings that limit their usefulness. In DEA we have two fundamental approaches to measuring efficiency with very different characteristics; radial and non-radial. We demonstrate a method for linking these two approaches in a unified framework called Connected-SBM (slacks-based measure). It includes two scalar parameters, and by changing the parameter values we can relocate the analysis anywhere between the radial and the non-radial models. An appropriate choice of these parameters can overcome the key shortcomings inherent in the two approaches, namely, proportionality and mixed patterns of slacks. Copyright Springer Science+Business Media, LLC 2008

Keywords: Efficiency; DEA; Radial and non-radial slacks (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (30)

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DOI: 10.1007/s10479-008-0356-8

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