Overcoming Data Limitations in Nonparametric Benchmarking: Applying PCA-DEA to Natural Gas Transmission
We empirically demonstrate a practical approach of efficiency evaluation with limited data availability in some regulated industries. We apply PCA-DEA for radial efficiency measurement to U.S. natural gas transmission companies in 2007. PCA-DEA reduces dimensions of the optimization problem while maintaining most of the variation in the original data. Our results suggest that the methodology reduces the probability of over-estimation of individual firm-specific performance.
Year of publication: |
2010
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Authors: | Nieswand, Maria ; Cullmann, Astrid ; Neumann, Anne |
Published in: |
Review of Network Economics. - De Gruyter, ISSN 1446-9022, ZDB-ID 2139394-1. - Vol. 9.2010, 2
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Publisher: |
De Gruyter |
Subject: | efficiency analysis | PCA-DEA | network regulation | natural gas transmission |
Saved in:
Online Resource