BAM: a bounded adjusted measure of efficiency for use with bounded additive models

BAM: a bounded adjusted measure of efficiency for use with bounded additive models

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Article ID: iaor20112677
Volume: 35
Issue: 2
Start Page Number: 85
End Page Number: 94
Publication Date: Apr 2011
Journal: Journal of Productivity Analysis
Authors: , , , ,
Keywords: statistics: data envelopment analysis
Abstract:

A decade ago the Range Adjusted Measure (RAM) was introduced for use with Additive Models. The empirical experience gained since then recommends developing a new measure with similar characteristics but with more discriminatory power. This task is accomplished in this paper by introducing the Bounded Adjusted Measure (BAM) in connection with a new family of Data Envelopment Analysis (DEA) additive models that incorporate lower bounds for inputs and upper bounds for outputs while accepting any returns to scale imposed on the production technology.

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