DEA Cross Efficiency

Wade D. Cook () and Joe Zhu
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Wade D. Cook: York University
Joe Zhu: Worcester Polytechnic Institute

Chapter 2 in Data Envelopment Analysis, 2015, pp 23-43 from Springer

Abstract: Abstract Data envelopment analysis (DEA) provides a relative efficiency measure for peer decision making units (DMUs) with multiple inputs and outputs. While DEA has been proven an effective approach in identifying the best practice frontiers, its flexibility in weighting multiple inputs and outputs and its nature of self-evaluation have been criticized. The cross efficiency method was developed as a DEA extension to rank DMUs with the main idea being to use DEA to do peer evaluation, rather than in pure self-evaluation mode. However, cross efficiency scores obtained from the original DEA model are generally not unique, and depend on which of the alternate optimal solutions to the DEA linear programs is used. The current chapter discusses various cross efficiency approaches in dealing with non-unique solutions from DEA

Keywords: Data Envelopment Analysis (DEA); Cross efficiency; Multiplicative; Cobb-Douglas (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1007/978-1-4899-7553-9_2

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