An occurrence of multiple projections in DEA-based measurement of technical efficiency: Theoretical comparison among DEA models from desirable properties

Sueyoshi, Toshiyuki; Sekitani, Kazuyuki

doi:10.1016/j.ejor.2008.01.045

Cited by 117 publications

(37 citation statements)

References 51 publications

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“…This was considered appropriate as, in a separate analysis, we concluded that scale efficiency remained relatively stable during this period (no significant change in the level of scale efficiency was identified by Wilcoxon Signed Rank tests). Furthermore, as discussed in the DEA literature (see, for example, Sueyoshi & Sekitani, 2009), only the model proposed by Charnes, Cooper and Rhodes (1978), with a CRS assumption, can satisfy the property of frontier shift measurability. In this respect, considering that one of our main objectives is to identify potential shifts in the best practice frontier, we chose to use a DEA model with a CRS assumption.…”

Section: Methodsmentioning

confidence: 99%

Does partial privatisation improve performance? Evidence from a chain of hotels in Portugal

Amado

Santos

Serra

2017

Journal of Business Research

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This article contributes to the literature by testing six research hypotheses regarding the impact of partial privatisation on firms' performance. We measure performance using Data Envelopment Analysis (DEA), the Malmquist Index and ratios related to labour productivity, profitability and capacity utilisation. We use the Wilcoxon Signed Rank test to compare the performance after privatisation with that before privatisation. The hypotheses are tested with data from a chain of Portuguese heritage hotels, partially privatised in 2003. We conclude that productivity growth after privatisation is superior to productivity growth before privatisation due to technological progress. However, due to a frontier regress observed in the privatisation year, total factor productivity and profitability deteriorated after privatisation. This suggests that both efficiency changes and frontier shifts should be taken into account in order to accurately assess the impact of privatisation.

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Section: Methodsmentioning

confidence: 99%

Does partial privatisation improve performance? Evidence from a chain of hotels in Portugal

Amado

Santos

Serra

2017

Journal of Business Research

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“…The treatment is practically acceptable, but mathematically problematic in DEA assessment, because the radial models produce different efficiency scores between with and without the treatment. Meanwhile, [8] has discussed a mathematical rationale regarding why the radial models cannot directly handle the occurrence of zero in a data set. According to [8], the radial models do not have the property of translation invariance so that they cannot directly handle an occurrence of zero in a data set.…”

Section: Problems In Dea Applicationsmentioning

confidence: 99%

“…Meanwhile, [8] has discussed a mathematical rationale regarding why the radial models cannot directly handle the occurrence of zero in a data set. According to [8], the radial models do not have the property of translation invariance so that they cannot directly handle an occurrence of zero in a data set. The property implies that an efficiency measure should not be influenced even if inputs and/or outputs shift toward a same direction by adding or subtracting a specific real number.…”

Section: Problems In Dea Applicationsmentioning

confidence: 99%

“…For example, the research of [4] documented what SCSCs were and then proposed a use of the primal-dual interior-point method that incorporated them into DEA algorithm. Acknowledging the importance of the interiorpoint method in solving DEA equipped with SCSCs, studies [6][7][8] have recently proposed a new use of SCSCs for DEA (hereafter, DEA/SCSCs) in primal-dual combined radial and non-radial models, so not the algorithmic perspective. Their original studies [6,7] applied DEA/ SCSCs for identifying a supporting hyperplane(s) on an efficiency frontier.…”

Section: Introductionmentioning

confidence: 99%

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Pitfalls and Remedies in DEA Applications: How to Handle an Occurrence of Zero in Multipliers by Strong Complementary Slackness Conditions

Sueyoshi¹,

Goto²

2013

ENG

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This study discusses a guideline on a proper use of Data Envelopment Analysis (DEA) that has been widely used for performance analysis in public and private sectors. The use of DEA is equipped with Strong Complementary Slackness Conditions (SCSCs) in this study, but an application of DEA/SCSCs depends upon its careful use, as summarized in the guideline. The guideline consists of the five suggestions. First, a data set used in the DEA applications should not have a ratio variable (e.g., financial ratios) in an input(s) and/or an output(s). Second, radial DEA models under variable and constant Returns to Scale (RTS) need a special treatment on zero in a data set. Third, the DEA evaluation needs to drop an outlier. Fourth, an imprecise number (e.g., 1/3) may suffer from a round-off error because DEA needs to specify it in a precise expression to operate a computer code. Finally, when a large input or output variable may dominate other variables in DEA computation, it is necessary to normalize the data set or simply to divide each observation by its average. Such a simple treatment produces more reliable DEA results than the one without any data adjustment. This study also discusses how to handle an occurrence of zero in DEA multipliers by applying SCSCs. The DEA/SCSCs can serve for a multiplier restriction approach without any prior information. Thus, the propesed DEA/SCSCs can provide more reliable results than a straight use of DEA.

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“…Results indicated that provinces with higher level GDP per capita had higher eco-efficiency relatively with the exceptions of Hainan and Qinghai. Sueyoshi and Sekitani (2009) discussed nine desirable properties to measure the technical efficiency need to satisfy from the perspective of production economics and optimization. Results showed that all the seven DEA models suffer from a problem of multiple projections and violate the property on aggregation of inputs and outputs.…”

Section: Literature Reviewmentioning

confidence: 99%

Evaluation of NOx, SOx and CO2 Emissions of Taiwan’s Thermal Power Plants by Data Envelopment Analysis

Liu

Lin

Lewis

2013

Aerosol Air Qual. Res.

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An integrated environmental and operational evaluation model is constructed by data envelopment analysis (DEA) to examine seven thermal power plants operating in Taiwan during [2001][2002][2003][2004][2005][2006][2007][2008]. Inputs and desirable outputs along with undesirable outputs, including CO 2 , SO x , and NO x emissions, were simulated. A slack variable analysis was conducted to identify possible ways to improve the inefficient power plants. In addition, three models were compared to identify the actual magnitude of inefficiency. The results indicate that the integrated efficiency and production scale of some plants were inefficient during [2001][2002][2003][2004][2005][2006][2007][2008]. Reductions in fuel consumption and CO 2 emissions are identified as the major strategies to improve efficiency. Other options include modifying pre-existing management measures, installing pollution prevention controls and resizing the scale of the power plant. It is anticipated that the findings of this study will help policymakers to achieve better environmental and operational performance with regard to existing thermal power plants.

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An occurrence of multiple projections in DEA-based measurement of technical efficiency: Theoretical comparison among DEA models from desirable properties

Cited by 117 publications

References 51 publications

Does partial privatisation improve performance? Evidence from a chain of hotels in Portugal

Does partial privatisation improve performance? Evidence from a chain of hotels in Portugal

Pitfalls and Remedies in DEA Applications: How to Handle an Occurrence of Zero in Multipliers by Strong Complementary Slackness Conditions

Evaluation of NOx, SOx and CO2 Emissions of Taiwan’s Thermal Power Plants by Data Envelopment Analysis

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