Programmatic efficiency comparisons between unequally sized groups of DMUs in DEA

Simpson, G. (2005). Programmatic efficiency comparisons between unequally sized groups of DMUs in DEA. Journal of the Operational Research Society, 56 (12), pp. 1431-1438.

Abstract

Data envelopment analysis (DEA) is a popular non-parametric technique for determining the efficiency of a homogeneous set of decision-making units (DMUs). In many practical cases, there is some doubt if the all the DMUs form a single group with a common efficiency distribution. The Mann-Whitney rank statistic has been used in DEA both to test if two groups of DMUs come from a common efficiency distribution and also to test if the two groups have a common frontier, each of which are likely to have important but different policy implications for the management of the groups. In this paper it is demonstrated that where the Mann-Whitney rank statistic is used for the second of these it is likely to overestimate programmatic inefficiency, particularly of the smaller group. A new non-parametric statistic is proposed for the case of comparing the efficient frontiers of two groups, which overcomes the problems we identify in the use of the Mann-Whitney rank statistic for this purpose. © 2005 Operational Research Society Ltd. All rights reserved.

Publication DOI: https://doi.org/10.1057/palgrave.jors.2601961
Divisions: Aston Business School > Operations & information management
Aston Business School
Aston Business School > Operations & information management research group
Additional Information: This is a post-peer-review, pre-copyedit version of an article published in Journal of the Operational Research Society. The definitive publisher-authenticated version Simpson, Gary P.M. (2005). Programmatic efficiency comparisons between unequally sized groups of DMUs in DEA. Journal of the Operational Research Society, 56 (12), pp. 1431-1438, is available online at: http://www.palgrave-journals.com/jors/journal/v56/n12/full/2601961a.html
Uncontrolled Keywords: data envelopment analysis,statistics,Management of Technology and Innovation,Strategy and Management,Management Science and Operations Research
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Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
http://www.palg ... l/2601961a.html (Publisher URL)
Published Date: 2005-12
Authors: Simpson, G.

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