A comment on multi-stage data envelopment analysis methodology

A comment on multi-stage data envelopment analysis methodology

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Article ID: iaor2006355
Country: Netherlands
Volume: 28
Issue: 2
Start Page Number: 93
End Page Number: 98
Publication Date: Mar 2001
Journal: Operations Research Letters
Authors: ,
Keywords: statistics: data envelopment analysis
Abstract:

Coelli introduced a multi-stage (MS-) DEA methodology that represents an interesting alternative for the treatment of slacks remaining after proportional correction in inputs or outputs. By solving a sequence of radial models, one thus arrives at the identification of “more representative efficient points” (in terms of similar input/output mixes). We show that “most representative efficient points” can be found using a direct approach and may differ from those obtained by MS-DEA. Nevertheless, MS-DEA remains very attractive in view of its economic (intrinsic price) legitimation.

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