DEA-R:ratio-based comparative efficiency model, its mathematical relation to DEA and its use in applications

Despic, Ozren; Despic, Mladen and Paradi, Joseph C. (2007). DEA-R:ratio-based comparative efficiency model, its mathematical relation to DEA and its use in applications. Journal of Productivity Analysis, 28 (1-2), pp. 33-44.

Abstract

We propose a new mathematical model for efficiency analysis, which combines DEA methodology with an old idea-Ratio Analysis. Our model, called DEA-R, treats all possible ratios "output/input" as outputs within the standard DEA model. Although DEA and DEA-R generate different summary measures for efficiency, the two measures are comparable. Our mathematical and empirical comparisons establish the validity of DEA-R model in its own right. The key advantage of DEA-R over DEA is that it allows effective integration of the model with experts' opinions via flexible restrictive conditions on individual "output/input" pairs. © 2007 Springer Science+Business Media, LLC.

Publication DOI: https://doi.org/10.1007/s11123-007-0050-x
Divisions: Aston Business School > Operations & information management
Aston Business School > Operations & information management research group
Related URLs:
Uncontrolled Keywords: DEA,efficiency,ratio analysis,weight restrictions,Business and International Management,Economics and Econometrics,Social Sciences (miscellaneous)
Published Date: 2007-10

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