Vladimir E. Krivonozhko, Finn R. Førsund
Identifying Suspicious Efficient Units in DEA Models
() and Andrey V. Lychev
Abstract: Applications of the DEA models show that inadequate
results may arise in some cases, two of these inadequacies being: a) too
many efficient units may appear in some DEA models; b) a DEA model may show
an inefficient unit from the point of view of experts as an efficient one.
The purpose of this paper is to identify suspicious units that may unduly
become efficient. The concept of a terminal unit is introduced for such
units. It is shown by establishing theorems how units can be identified as
terminal units and how different definitions of suspicious units are
related. An approach for improving the adequacy of DEA models based on
terminal units is suggested, and an example shown based on a real-life data
set for Russian banks.
Keywords: Data Envelopment Analysis (DEA); Terminal units; Efficiency; Weight restrictions; Domination cones; (follow links to similar papers)
JEL-Codes: C44; C61; C67; D24; (follow links to similar papers)
32 pages, November 7, 2012
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- This paper is published as:
Krivonozhko, Vladimir E., Finn R. Førsund and Andrey V. Lychev, (2013), 'Identifying Suspicious Efficient Units in DEA Models', Doklady Mathematics, Vol. 88, No. 3, pages 142-146
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