Data Envelopment Analysis – a method for measuring the relative technical efficiency

In the article, the author presents Data Envelopment Analysis, which is a method for measuring relative technical efficiency. The idea of DEA method is illustrated by a simple example, where objects characterized by one input and one output only are considered. Next, a the basic DEA model (CCR model) is described and conditions are given, based on which a unit under examination can be considered efficient. The author also presents a short review of some basic CCR model modifications, which, e.g., allow the existence of variable returns to scale (in CCR model, it is assumed that returns to scale are constant), and simultaneous input and output model orientation – basic CCR model is input-oriented or outputoriented. The modifications may also consist in introducing nondiscretionary variables into DEA efficiency analysis or additional constrainsts to the basic CCR model.