Abstract
Data envelopment analysis (DEA) developed originally as a set of techniques for measuring the relative efficiency of a set of decisionmaking units (DMUs), when the price data for inputs and outputs are either unavailable or unknown. These techniques are nonparametric in the sense that they are entirely based on the observed input-output data. The statistical aspects of the data set are almost ignored by the traditional DEA models and in this sense they are far from nonparametric. Over the last two decades the DEA models have been widely applied in management science and operations research literature and the theoretical formulations of DEA have been generalized in several directions as follows:
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(i)
Various types of DEA models have been formulated which clarify the concepts of technical and allocative efficiency and their link with the concept of Pareto efficiency in economic theory,
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(ii)
Log-linear and nonlinear formulations have extended the linear DEA models, and generalized the concepts of increasing, decreasing or constant returns to scale as applied to multiple-output and multiple-input cases, and
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(iii)
Sources of inefficiency identified through the DEA models have been incorporated in regression models in various ways.
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Sengupta, J.K. (1995). Theory of DEA Models. In: Dynamics of Data Envelopment Analysis. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-8506-4_1
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DOI: https://doi.org/10.1007/978-94-015-8506-4_1
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