Context-dependent data envelopment analysis—Measuring attractiveness and progress
01 Oct 2003-Omega-international Journal of Management Science (Elsevier BV)-Vol. 31, Iss: 5, pp 397-408
TL;DR: In this article, the authors extended the context-dependent DEA by incorporating value judgment into the attractiveness and progress measures, and applied the method to measuring the attractiveness of 32 computer printers.
Abstract: Data envelopment analysis (DEA) is a methodology for identifying the efficient frontier of decision making units (DMUs). Context-dependent DEA refers to a DEA approach where a set of DMUs are evaluated against a particular evaluation context. Each evaluation context represents an efficient frontier composed by DMUs in a specific performance level. The context-dependent DEA measures (i) the attractiveness when DMUs exhibiting poorer performance are chosen as the evaluation context, and (ii) the progress when DMUs exhibiting better performance are chosen as the evaluation context. The current paper extends the context-dependent DEA by incorporating value judgment into the attractiveness and progress measures. The method is applied to measuring the attractiveness of 32 computer printers. It is shown that the attractive measure helps (i) customers to select the best option, and (ii) printer manufacturers to identify the potential competitors.
Citations
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TL;DR: In this article, the authors identify non-discretionary or exogenous variables that are associated with better/worse economic performance of local governments (the determinants of efficiency).
Abstract: Managing financial resources efficiently is a requirement for all levels of government. However, measuring the performance of governments or other public authorities is usually highly complex. The results of this type of assessment are likely to be biased or perverse. This study attempts to identify non-discretionary or exogenous variables that are associated with better/worse economic performance of local governments (the determinants of efficiency). Based on past research, the paper starts by providing a classification for the different types of determinants of local government performance. Afterwards, using data from all Portuguese municipalities, the relationship between a large number of factors and the efficiency scores is assessed. To accomplish this, several Tobit, OLS and double-bootstrap models were implemented. The efficiency scores are computed through non-parametric frontier methodologies. The results indicate that analysts must be prudent while interpreting the economic results achieved by each municipality. To be impartial and robust any performance evaluation model should (at least) consider the effects of the determinants of cost efficiency identified in this paper.
170 citations
TL;DR: The DEA theory needed by the end-users, key model design issues, correct interpretation of DEA results, and advanced concepts of current research focused on further development of DEA are discussed in this article.
Abstract: Throughout the book, my colleagues and I have endeavored to address the DEA theory needed by the end-users, key model design issues, correct interpretation of DEA results, and advanced concepts of current research focused on further development of DEA. The examples are chosen from the service sector. Specifically represented areas are banking, education, property management, hospitality, tourism, health insurance, socially responsible investments, public transportation, pension funds, information technology, public hospitals, Olympics, telecommunications, public library, police stations, energy, retail, and research centers. Chapter titles follow the naming convention of providing the topic or purpose of the chapter first, followed by the listing of the industries or areas where illustrations have been set.
165 citations
Additional excerpts
...The context-dependent DEA (Seiford and Zhu 2003, Zhu 2002) is introduced to measure the relative attractiveness of a particular DMU when compared to others....
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TL;DR: In this article, a slack-based context-dependent DEA is proposed to evaluate the inefficiency represented by non-zero input and output slacks in the context-independent DEA, which allows a full evaluation of inefficiency in a DMUs performance.
Abstract: Data envelopment analysis (DEA) has been proven as an excellent data-oriented performance evaluation method when multiple inputs and outputs are present in a set of peer decision-making units (DMUs). In the DEA literature, a context-dependent DEA is developed to provide finer evaluation results by examining the efficiency of DMUs in specific performance levels based upon radial DEA efficiency scores. In DEA, non-zero input and output slacks are very likely to present after the radial efficiency score improvement. Often, these non-zero slack values represent a substantial amount of inefficiency. Therefore, in order to fully measure the inefficiency in DMU's performance, it is very important to also consider the inefficiency represented by the non-zero slacks in the context-dependent DEA. This study proposes a slack-based context-dependent DEA which allows a full evaluation of inefficiency in a DMUs performance. By using slack-based efficiency measure, we obtain different frontier levels and more appropriate performance benchmarks for inefficient DMUs.
140 citations
Cites result from "Context-dependent data envelopment ..."
...The context-dependent DEA [2,3] is introduced to measure the relative attractiveness of a particular DMU when compared to others....
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TL;DR: Wang et al. as mentioned in this paper presented an equitable model for efficiency evaluation of decision-making units with undesirable outputs and introduced a technique for cross-efficiency evaluation considering undesirable outputs, and a ranking priority model was proposed considering the decision making units' intentions of pursuing the best ranking positions.
126 citations
TL;DR: Wang et al. as mentioned in this paper proposed a DEA-based approach to allocate China's national CO2 emissions and energy intensity reduction targets over Chinese provincial industrial sectors, considering the necessity of mitigating GHG emission and energy consumption.
117 citations
References
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TL;DR: A nonlinear (nonconvex) programming model provides a new definition of efficiency for use in evaluating activities of not-for-profit entities participating in public programs and methods for objectively determining weights by reference to the observational data for the multiple outputs and multiple inputs that characterize such programs.
25,433 citations
"Context-dependent data envelopment ..." refers methods in this paper
...However, DMU4 (Copal WH6700) which is ranked highly by the CCR model does not have a large attractiveness score....
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...The scores are actually the output-oriented CCR scores....
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...When l = 1, model (1) becomes the original outputoriented CCR model and DMUs in set E1 de6ne the 6rst-level e3cient frontier....
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...Data envelopment analysis (DEA), introduced by Charnes, Cooper and Rhodes (CCR) [1], is a mathematical programming method for measuring the relative e3ciency of decision making units (DMUs) with multiple outputs and multiple inputs....
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...The ranking scores are reciprocal of the output-oriented CCR e3ciency scores which are equal to one if DMUs are in E1, and otherwise are greater than one if DMUs are in set E2 or E3 or E4....
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TL;DR: In this paper, two hypotheses about the effect of context on choice are proposed, one hypothesis is that consumer choice is often influenced by the context, defined by the set of alternatives under consideration.
Abstract: Consumer choice is often influenced by the context, defined by the set of alternatives under consideration. Two hypotheses about the effect of context on choice are proposed. The first hypothesis, ...
1,461 citations
"Context-dependent data envelopment ..." refers background in this paper
...Similarly, a product may appear attractive against a background of less attractive alternatives and unattractive when compared to more attractive alternatives [2]....
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TL;DR: The authors present a context-dependent model that expresses the value of each option as an additive combination of two components: a contingent weighting process that captures the effect of the background context, and a binary comparison process that describes the local context.
Abstract: The standard theory of choice—based on value maximization—associates with each option a real value such that, given an offered set, the decision maker chooses the option with the highest value. Despite its simplicity and intuitive appeal, there is a growing body of data that is inconsistent with this theory. In particular, the relative attractiveness of x compared to y often depends on the presence or absence of a third option z, and the “market share” of an option can actually be increased by enlarging the offered set. We review recent empirical findings that are inconsistent with value maximization, and present a context-dependent model that expresses the value of each option as an additive combination of two components: a contingent weighting process that captures the effect of the background context, and a binary comparison process that describes the effect of the local context. The model accounts for observed violations of the standard theory and provides a framework for analyzing context-dependent p...
1,281 citations
TL;DR: It is shown that the standard DEA model can be used to improve the performance via increasing the desirable outputs and decreasing the undesirable outputs, and the linearity and convexity of DEA are preserved.
1,254 citations
TL;DR: In this paper, the AR concept is defined for efficiency analysis of the linear production possibility set and applied here to 83 farms, using only the special case of AR consisting of separate linear homogeneous restrictions on the input and output multipliers.
706 citations
"Context-dependent data envelopment ..." refers background in this paper
...Therefore, the value judgment here can be expressed by the assurance region concept [7]....
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