IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v207y2010i2p1116-1121.html
   My bibliography  Save this article

Efficiency analysis to incorporate interval-scale data

Author

Listed:
  • Dehnokhalaji, Akram
  • Korhonen, Pekka J.
  • Köksalan, Murat
  • Nasrabadi, Nasim
  • Wallenius, Jyrki

Abstract

We develop an approach to efficiency analysis to enable us to incorporate interval-scale data in addition to ratio-scale data. Our approach introduces a measure of inefficiency and identifies efficient units as is done in Data Envelopment Analysis. The basic idea in our approach is to find the "best" hyperplane separating the units that are better and worse than each unit. "Best" is defined in such a way that the number of not-better units is maximal. The efficiency measure is defined as a proportion of not-better units to all units. The results are invariant under a strictly increasing linear re-scaling of any input- or output-variables. Thus zeroes or negative values do not cause problems for the analysis. The approach is used to analyze the data of the research evaluation exercise recently carried out at the University of Joensuu, Finland.

Suggested Citation

  • Dehnokhalaji, Akram & Korhonen, Pekka J. & Köksalan, Murat & Nasrabadi, Nasim & Wallenius, Jyrki, 2010. "Efficiency analysis to incorporate interval-scale data," European Journal of Operational Research, Elsevier, vol. 207(2), pages 1116-1121, December.
    • Handle: RePEc:eee:ejores:v:207:y:2010:i:2:p:1116-1121
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377-2217(10)00266-3
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Köksalan, Murat & Büyükbasaran, Tayyar & Özpeynirci, Özgür & Wallenius, Jyrki, 2010. "A flexible approach to ranking with an application to MBA Programs," European Journal of Operational Research, Elsevier, vol. 201(2), pages 470-476, March.
    2. Pekka Korhonen & Sari Stenfors & Mikko Syrjänen, 2003. "Multiple Objective Approach as an Alternative to Radial Projection in DEA," Journal of Productivity Analysis, Springer, vol. 20(3), pages 305-321, November.
    3. Tarja Joro & Pekka Korhonen & Jyrki Wallenius, 1998. "Structural Comparison of Data Envelopment Analysis and Multiple Objective Linear Programming," Management Science, INFORMS, vol. 44(7), pages 962-970, July.
    4. Laurens Cherchye & Timo Kuosmanen & Thierry Post, 2000. "New Tools for Dealing with Errors-in-Variables in DEA," Public Economics Working Paper Series ces0006, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics.
    5. Murat Köksalan & Ceren Tuncer, 2009. "A Dea-Based Approach To Ranking Multi-Criteria Alternatives," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 8(01), pages 29-54.
    6. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    7. Korhonen, Pekka J. & Luptacik, Mikulas, 2004. "Eco-efficiency analysis of power plants: An extension of data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 154(2), pages 437-446, April.
    8. Halme, Merja & Joro, Tarja & Koivu, Matti, 2002. "Dealing with interval scale data in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 137(1), pages 22-27, February.
    9. Adler, Nicole & Friedman, Lea & Sinuany-Stern, Zilla, 2002. "Review of ranking methods in the data envelopment analysis context," European Journal of Operational Research, Elsevier, vol. 140(2), pages 249-265, July.
    10. Charnes, A. & Cooper, W. W. & Golany, B. & Seiford, L. & Stutz, J., 1985. "Foundations of data envelopment analysis for Pareto-Koopmans efficient empirical production functions," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 91-107.
    11. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    12. Charnes, A. & Cooper, W. W. & Rhodes, E., 1979. "Measuring the efficiency of decision-making units," European Journal of Operational Research, Elsevier, vol. 3(4), pages 339-338, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kristof De Witte & Laura López-Torres, 2017. "Efficiency in education: a review of literature and a way forward," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(4), pages 339-363, April.
    2. Johnes, Jill, 2015. "Operational Research in education," European Journal of Operational Research, Elsevier, vol. 243(3), pages 683-696.
    3. Nasrabadi, Nasim & Dehnokhalaji, Akram & Korhonen, Pekka & Lokman, Banu & Wallenius, Jyrki, 2022. "Robustness of efficiency scores in data envelopment analysis with interval scale data," European Journal of Operational Research, Elsevier, vol. 297(3), pages 1151-1161.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ramanathan, Ramakrishnan & Ramanathan, Usha & Bentley, Yongmei, 2018. "The debate on flexibility of environmental regulations, innovation capabilities and financial performance – A novel use of DEA," Omega, Elsevier, vol. 75(C), pages 131-138.
    2. Merja Halme & Tarja Joro & Pekka Korhonen & Seppo Salo & Jyrki Wallenius, 1999. "A Value Efficiency Approach to Incorporating Preference Information in Data Envelopment Analysis," Management Science, INFORMS, vol. 45(1), pages 103-115, January.
    3. Adler, Nicole & Friedman, Lea & Sinuany-Stern, Zilla, 2002. "Review of ranking methods in the data envelopment analysis context," European Journal of Operational Research, Elsevier, vol. 140(2), pages 249-265, July.
    4. Suzuki, Soushi & Nijkamp, Peter, 2016. "An evaluation of energy-environment-economic efficiency for EU, APEC and ASEAN countries: Design of a Target-Oriented DFM model with fixed factors in Data Envelopment Analysis," Energy Policy, Elsevier, vol. 88(C), pages 100-112.
    5. Korhonen, Pekka J. & Dehnokhalaji, Akram & Nasrabadi, Nasim, 2018. "A lexicographic radial projection onto the efficient frontier in Data Envelopment Analysis," European Journal of Operational Research, Elsevier, vol. 265(3), pages 1005-1012.
    6. M. Lábaj & M. Luptáčik & E. Nežinský, 2014. "Data envelopment analysis for measuring economic growth in terms of welfare beyond GDP," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(3), pages 407-424, August.
    7. Peter Nijkamp & Soushi Suzuki, 2009. "A Generalized Goals-achievement Model in Data Envelopment Analysis: an Application to Efficiency Improvement in Local Government Finance in Japan," Spatial Economic Analysis, Taylor & Francis Journals, vol. 4(3), pages 249-274.
    8. Karima Kourtit & Peter Nijkamp & Soushi Suzuki, 2023. "Quantitative performance assessment of Asian stellar cities by a DEA cascade system: a capability interpretation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(1), pages 259-286, February.
    9. Kao, Chiang, 2020. "Measuring efficiency in a general production possibility set allowing for negative data," European Journal of Operational Research, Elsevier, vol. 282(3), pages 980-988.
    10. Kao, Chiang, 2022. "Measuring efficiency in a general production possibility set allowing for negative data: An extension and a focus on returns to scale," European Journal of Operational Research, Elsevier, vol. 296(1), pages 267-276.
    11. Kao, Chiang, 2022. "Closest targets in the slacks-based measure of efficiency for production units with multi-period data," European Journal of Operational Research, Elsevier, vol. 297(3), pages 1042-1054.
    12. Peter Bogetoft & Kurt Nielsen, 2002. "DEA Based Yardstick Competition in Natural Resource Management," CIE Discussion Papers 2002-04, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
    13. Yossi Hadad & Lea Friedman & Victoria Rybalkin & Zilla Sinuany-Stern, 2013. "The relationship between DEA efficiency and the type of production function, the degree of homogeneity, and error variability," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 21(3), pages 595-607, September.
    14. Kao, Chiang, 2010. "Malmquist productivity index based on common-weights DEA: The case of Taiwan forests after reorganization," Omega, Elsevier, vol. 38(6), pages 484-491, December.
    15. Yun, Y. B. & Nakayama, H. & Tanino, T., 2004. "A generalized model for data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 157(1), pages 87-105, August.
    16. P. Korhonen & A. Siljamaeki & M. Soismaa, 1998. "Practical Aspects of Value Efficiency Analysis," Working Papers ir98042, International Institute for Applied Systems Analysis.
    17. Picazo-Tadeo, Andrés J. & Beltrán-Esteve, Mercedes & Gómez-Limón, José A., 2012. "Assessing eco-efficiency with directional distance functions," European Journal of Operational Research, Elsevier, vol. 220(3), pages 798-809.
    18. Srinivas K. Reddy & Antonie Stam & Per J. Agrell, 2015. "Brand Equity, Efficiency and Valuation of Professional Sports Franchises: The Case of Major League Baseball," International Journal of Business and Social Research, LAR Center Press, vol. 5(1), pages 63-89, January.
    19. Ghosh, Santosh & Yadav, Vinod Kumar & Mukherjee, Vivekananda & Gupta, Shubham, 2021. "Three decades of Indian power-sector reform:A critical assessment," Utilities Policy, Elsevier, vol. 68(C).
    20. Ghazi, Amineh & Hosseinzadeh Lotfi, Farhad, 2019. "Assessment and budget allocation of Iranian natural gas distribution company- A CSW DEA based model," Socio-Economic Planning Sciences, Elsevier, vol. 66(C), pages 112-118.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:207:y:2010:i:2:p:1116-1121. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.