Terminal units in DEA: Definition and Determination

Vladimir Krivonozhko, Finn Førsund and Andrey V. Lychev
Additional contact information
Vladimir Krivonozhko: Institute for Systems Analysis, Russian Academy of Sciences, Moscow
Andrey V. Lychev: Accounts Chamber of the Russian Federation, Moscow

No 04/2011, Memorandum from Oslo University, Department of Economics

Abstract: Applications of the DEA models show that inadequate results may arise in some cases, two of these inadequacies being: a) too many efficient units may appear in some DEA models; b) a DEA model may show an inefficient unit from the point of view of experts as an efficient one. The purpose of this paper is to identify units that may unduly become efficient. The concept of a terminal unit is introduced for such units. A method for improving the adequacy of DEA models based on terminal units is suggested, and an example shown based on a real-life data set for Russian banks.

Keywords: Terminal units; DEA; Efficiency; Weight restrictions; Domination cones (search for similar items in EconPapers)
JEL-codes: C44 C61 C67 D24 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2011-02-17
New Economics Papers: this item is included in nep-cse, nep-ecm and nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published as Krivonozhko, Vladimir, Finn R. Førsund and Andrey V. Lychev, 'Terminal units in DEA: Definition and Determination' in Journal of productivity Analysis, 2015, pages 151-164.

Downloads: (external link)
https://www.sv.uio.no/econ/english/research/unpubl ... 011/Memo-04-2011.pdf (application/pdf)

Related works:
Journal Article: Terminal units in DEA: definition and determination (2015)
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:hhs:osloec:2011_004

Access Statistics for this paper

More papers in Memorandum from Oslo University, Department of Economics Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Mari Strønstad Øverås ().