Scaling units via the canonical correlation analysis in the DEA context

Scaling units via the canonical correlation analysis in the DEA context

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Article ID: iaor19992094
Country: Netherlands
Volume: 100
Issue: 3
Start Page Number: 629
End Page Number: 637
Publication Date: Aug 1997
Journal: European Journal of Operational Research
Authors: ,
Abstract:

This paper deals with the evaluation of decision making units which have multiple inputs and outputs. A new method (CCA/DEA) is developed where the Canonical Correlation Analysis (CCA) is utilized to provide a full rank scaling for all the units rather than a categorical classification (for efficient and inefficient units) as done by the Data Envelopment Analysis (DEA). The CCA/DEA approach is an attempt to bridge the gap between the frontier approach of DEA and the average tendencies of statistics (econometrics). Nonparametric statistical tests are employed to validate the consistency between the classification from the DEA and the postclassification that was generated by the CCA/DEA.

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