DEA sensitivity analysis by changing a reference set: regional contribution to Japanese industrial development

This article presents a new DEA (data envelopment analysis) approach, referred to as 'DCR (DEA cross-reference) efficiency measure'. This DCR approach is extended into a new sensitivity analysis technique referred to as 'DCS (DEA cross-sensitivity)', that examines the stability of DEA efficiency by omitting an efficient DMU (decision making unit) and consequently, changing a reference set for the DMU. Applying the proposed DCR/DCS technique, this article empirically examines the regional contribution level of a local administrative unit to the entirety of Japanese industry.