Measuring the efficiency of NBA teams: additive efficiency decomposition in two-stage DEA

Chih-Hai Yang (), Hsuan-Yu Lin () and Chiang-Ping Chen ()

Annals of Operations Research, 2014, vol. 217, issue 1, 565-589

Abstract: This paper evaluates the efficiency of National Basketball Association (NBA) teams under a two-stage DEA framework. Applying the additive efficiency approach, we decompose overall team efficiency into first-stage wage efficiency and second-stage on-court efficiency and find out the individual endogenous weights for each stage. The empirical results show that NBA teams present a better performance on wage efficiency than for on-court efficiency, as on-court efficiency is influenced by many uncontrollable factors. Moreover, NBA teams, on average, tend to possess a higher weight on the first stage, suggesting that teams’ managers can enhance organizational efficiency more efficaciously by prudentially recruiting players. Copyright Springer Science+Business Media New York 2014

Keywords: NBA; Additive efficiency decomposition; Wage-efficiency; On-court efficiency (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (27)

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DOI: 10.1007/s10479-014-1536-3

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