A UNIVERSAL SOLUTION FOR UNITS - INVARIANCE IN DATA ENVELOPMENT ANALYSIS

Jin Xu (), Panagiotis Zervopoulos, Zhenhua Qian () and Gang Cheng ()
Additional contact information
Jin Xu: China Center for Health Development Studies Peking University, Beijing, China, Postal: CN
Zhenhua Qian: School of Social Science University of Science and Technology Beijing, China, Postal: CN
Gang Cheng: China Center for Health Development Studies Peking University, Beijing, China, Postal: CN

Theoretical and Practical Research in the Economic Fields, 2012, vol. 3, issue 2, 121-128

Abstract: The directional distance function model is a generalization of the radial model in data envelopment analysis (DEA). The directional distance function model is appropriate for dealing with cases where undesirable outputs exist. However, it is not a units-invariant measure of efficiency, which limits its accuracy. In this paper, we develop a data normalization method for DEA, which is a universal solution for the problem of units-invariance in DEA. The efficiency scores remain unchanged when the original data are replaced with the normalized data in the existing units-invariant DEA models, including the radial and slack-based measure models, i.e., the data normalization method is compatible with the radial and slack-based measure models. Based on normalized data, a units-invariant efficiency measure for the directional distance function model is defined.

Date: 2012
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: A universal solution for units-invariance in data envelopment analysis (2012)
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: https://EconPapers.repec.org/RePEc:srs:jtpref:v:3:y:2012:i:2:p:121-128

Access Statistics for this article

Theoretical and Practical Research in the Economic Fields is currently edited by Laura UNGUREANU

More articles in Theoretical and Practical Research in the Economic Fields from ASERS Publishing
Bibliographic data for series maintained by Claudiu Popirlan ( this e-mail address is bad, please contact ).