Improving the Sensitivity of Data Envelopment Analysis by Reducing Dimensionality.

Sata Envelopment Analysis (DEA) of efficiency is highly sensitive to the level of aggregation. Generally as the number of inputs and outputs increase, differences in measured relative efficiency across firms decrease. This paper advocates using the EKS index number formula to aggreagte inputs and outputs into a single input and output index prior to using DEA.

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Year of publication:	1996
Authors:	Fox, K.J. ; Hill ; R.J.
Institutions:	School of Economics, UNSW Business School
Subject:	PHARMACEUTICAL INDUSTRY \| STATISTICS

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Series:	New South Wales - School of Economics.
Type of publication:	Book / Working Paper
Notes:	14 pages
Classification:	C43 - Index Numbers and Aggregation ; C61 - Optimization Techniques; Programming Models; Dynamic Analysis ; D24 - Production; Capital and Total Factor Productivity; Capacity
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005664138