Article ID: | iaor2010987 |
Volume: | 37 |
Issue: | 6 |
Start Page Number: | 1087 |
End Page Number: | 1090 |
Publication Date: | Jun 2010 |
Journal: | Computers and Operations Research |
Authors: | Ruggiero John, Estelle Sarah M, Johnson Andy L |
In this paper, we discuss three-stage models that control for exogenous, non-discretionary inputs in data envelopment analysis. In a recent article in this journal, Monte Carlo analysis was employed to compare and contrast alternative DEA models that measure efficiency in the presence of exogenous variables. The methodology for comparison was flawed, calling into question the results presented. We introduce new second-stage models and compare and contrast them with simulated data.