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Stochastic Data Envelopment Analysis—A review

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  • Olesen, Ole B.
  • Petersen, Niels Christian

Abstract

This paper provides a review of stochastic Data Envelopment Analysis (DEA). We discuss extensions of deterministic DEA in three directions: (i) deviations from the deterministic frontier are modeled as stochastic variables, (ii) random noise in terms of measurement errors, sample noise, and specification errors is made an integral part of the model, and (iii) the frontier is stochastic as is the underlying Production Possibility Set (PPS).

Suggested Citation

  • Olesen, Ole B. & Petersen, Niels Christian, 2016. "Stochastic Data Envelopment Analysis—A review," European Journal of Operational Research, Elsevier, vol. 251(1), pages 2-21.
    • Handle: RePEc:eee:ejores:v:251:y:2016:i:1:p:2-21
    DOI: 10.1016/j.ejor.2015.07.058
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