Abstract
A decade ago the Range Adjusted Measure (RAM) was introduced for use with Additive Models. The empirical experience gained since then recommends developing a new measure with similar characteristics but with more discriminatory power. This task is accomplished in this paper by introducing the Bounded Adjusted Measure (BAM) in connection with a new family of Data Envelopment Analysis (DEA) additive models that incorporate lower bounds for inputs and upper bounds for outputs while accepting any returns to scale imposed on the production technology.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Aida K, Cooper WW, Pastor JT, Sueyoshi T (1998) Evaluating water supply services in Japan with Ram: a range-adjusted measure of inefficiency. OMEGA 26(2):207–232
Ali AI, Seiford LM (1993) The mathematical programming approach to efficiency analysis. Chapter 3. In: Fried HO, Lovell CAK, Schmidt SS (eds) The measurement of productive efficiency. Oxford University Press, New York
Asmild M, Pastor JT (2008) Bounded linear efficiency models, Trabajos I + D, CIO-2008-23, ISSN 1576-7264, Universidad Miguel Hernández de Elche, Spain
Asmild M, Pastor JT (2010) Slack free MEA and RDM with comprehensive efficiency measures. OMEGA 38:475–483
Banker RD, Charnes A, Cooper WW (1984) Some models for estimating technical and scale inefficiencies in data envelopment analysis. Manage Sci 30(9):1078–1092
Bogetoft P, Hougaard JL (1999) Efficiency evaluations based on potential (non-proportional) improvements. J Prod Anal 12:233–247
Briec W (1999) Hölder distance function and measurement of technical efficiency. J Prod Anal 11(2):111–131
Chambers RG, Chung Y, Färe R (1998) Profit, directional distance functions, and Nerlovian efficiency. J Optim Theory Appl 98(2):351–364
Charnes A, Cooper WW, Golany B, Seiford L, Stutz J (1985) Foundations of data envelopment analysis and Pareto-Koopmans empirical production functions. J Econom 30:91–107
Cooper WW, Park KS, Pastor JT (1999) RAM: a range adjusted measure of inefficiency for use with additive models and relations to other models and measures in DEA. J Prod Anal 11(1):5–42
Cooper WW, Seiford LM, Tone K (2007) Data envelopment analysis: a comprehensive text with models, applications, references and DEA-solver software, 2nd edn. Springer, New York
Lovell CAK, Pastor JT (1995) Units invariant and translation invariant DEA models. Oper Res Lett 18:147–151
Pastor JT (1994) “New Additive Models for handling Zero and Negative Data”, Working Paper, Depto. Estad. e Inv. Oper., Universidad de Alicante, Spain
Pastor JT, Ruiz JL (2007) Variables with Negative Values in Dea, Chapter 4. In: Cook WD, Zhu J (eds) Modelling data irregularities and structural complexities in data envelopment analysis. Springer, USA
Pastor JT, Ruiz JL, Sirvent I (1999) An enhanced DEA Russell graph efficiency measure. Eur J Oper Res 115(3):596–607
Pastor JT, Lovell CAK, Aparicio J (2008) Families of linear efficiency models based on Debreu’s loss function, Trabajos I + D, CIO I-2008-12, ISSN 1576-7264, Universidad Miguel Hernández de Elche, Spain
Ray SC (2004) Data envelopment analysis. Theory and techniques for economics and operations research. Cambridge University Press, Cambridge
Sharp JA, Meng W, Liu W (2007) A modified slack-based measure model for data envelopment analysis with natural negative outputs and inputs. J Oper Res Soc 58:1672–1677
Silva-Portela MC, Thanassoulis E (2006) Malmquist indexes using a geometric distance function (GDF). Application to a sample of Portuguese bank branches. J Prod Anal 25:25–41
Silva-Portela MCA, Thanassoulis E, Simpson G (2004) Negative data in DEA: a directional distance function approach applied to bank branches. J Oper Res Soc 55:1111–1121
Tone K (2001) A slacks-based measure of efficiency in data envelopment analysis. Eur J Oper Res 130:498–509
Acknowledgments
The authors would like to hereby express their gratitude to the Spanish Ministry of Science and Innovation through grant MTM2009-10479 and to the CIO for financial support. We would also like to thank Dr. Victor Podinovski for his suggestions during the NAPW 2010 meeting.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Cooper, W.W., Pastor, J.T., Borras, F. et al. BAM: a bounded adjusted measure of efficiency for use with bounded additive models. J Prod Anal 35, 85–94 (2011). https://doi.org/10.1007/s11123-010-0190-2
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11123-010-0190-2