IDEAS home Printed from https://ideas.repec.org/a/kap/jproda/v8y1997i2p215-230.html
   My bibliography  Save this article

On the Role of Weight Restrictions in Data Envelopment Analysis

Author

Listed:
  • Francisco Pedraja-Chaparro
  • Javier Salinas-Jimenez
  • Peter Smith

Abstract

This paper examines the role that weight restrictions play in Data Envelopment Analysis (DEA). It is argued that the decision to include a factor (input or output) in a DEA model represents an implicit judgement that the factor has a non-trivial weight. It therefore seems perverse to allow DEA to assign a trivial weight to that factor in assessing the efficiency of a unit. There is therefore a strong case for imposing restrictions on factor weights. However, many existing methods of weight restriction are in practice unwieldy. This paper proposes an alternative approach we term contingent weight restriction which is both practical and intellectually consistent with the DEA philosophy. The paper explores the implications of alternative methods of weight restriction using simulated data from a well known production process. Copyright Kluwer Academic Publishers 1997

Suggested Citation

  • Francisco Pedraja-Chaparro & Javier Salinas-Jimenez & Peter Smith, 1997. "On the Role of Weight Restrictions in Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 8(2), pages 215-230, May.
    • Handle: RePEc:kap:jproda:v:8:y:1997:i:2:p:215-230
    DOI: 10.1023/A:1007715912664
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1023/A:1007715912664
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1023/A:1007715912664?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Banker, Rajiv D. & Thrall, R. M., 1992. "Estimation of returns to scale using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 62(1), pages 74-84, October.
    2. Roll, Y & Golany, B., 1993. "Alternate methods of treating factor weights in DEA," Omega, Elsevier, vol. 21(1), pages 99-109, January.
    3. Boaz Golany, 1988. "Note---A Note on Including Ordinal Relations Among Multipliers in Data Envelopment Analysis," Management Science, INFORMS, vol. 34(8), pages 1029-1033, August.
    4. 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.
    5. Thompson, Russell G. & Langemeier, Larry N. & Lee, Chih-Tah & Lee, Euntaik & Thrall, Robert M., 1990. "The role of multiplier bounds in efficiency analysis with application to Kansas farming," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 93-108.
    6. Pestieau, P. & Tulkens, H., 1990. "Assessing the performance of the public sector activities: some recent evidence from the productive efficiency viewpoint," LIDAM Discussion Papers CORE 1990060, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 1993. "The Measurement of Productive Efficiency: Techniques and Applications," OUP Catalogue, Oxford University Press, number 9780195072181.
    8. 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.
    9. Agha Iqbal Ali & Wade D. Cook & Lawrence M. Seiford, 1991. "Strict vs. Weak Ordinal Relations for Multipliers in Data Envelopment Analysis," Management Science, INFORMS, vol. 37(6), pages 733-738, June.
    Full references (including those not matched with items on IDEAS)

    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. Krishna Kumar, C. & Sinha, Bani K., 1999. "Efficiency based production planning and control models," European Journal of Operational Research, Elsevier, vol. 117(3), pages 450-469, September.
    2. Francisco Pedraja & Javier Salinas & Peter Smith, 1994. "La restricción de las ponderaciones en el análisis envolvente de datos: una fórmula para mejorar la evaluación de la eficiencia," Investigaciones Economicas, Fundación SEPI, vol. 18(2), pages 365-380, May.
    3. Kaoru Tone, 2001. "On Returns to Scale under Weight Restrictions in Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 16(1), pages 31-47, July.
    4. William W. Cooper & Kyung Sam Park & Gang Yu, 2001. "An Illustrative Application of Idea (Imprecise Data Envelopment Analysis) to a Korean Mobile Telecommunication Company," Operations Research, INFORMS, vol. 49(6), pages 807-820, December.
    5. Schaffnit, Claire & Rosen, Dan & Paradi, Joseph C., 1997. "Best practice analysis of bank branches: An application of DEA in a large Canadian bank," European Journal of Operational Research, Elsevier, vol. 98(2), pages 269-289, April.
    6. C. Lovell & Shawna Grosskopf & Eduardo Ley & Jesús Pastor & Diego Prior & Philippe Eeckaut, 1994. "Linear programming approaches to the measurement and analysis of productive efficiency," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 2(2), pages 175-248, December.
    7. Nikolaos Oikonomou & Yannis Tountas & Argiris Mariolis & Kyriakos Souliotis & Kostas Athanasakis & John Kyriopoulos, 2016. "Measuring the efficiency of the Greek rural primary health care using a restricted DEA model; the case of southern and western Greece," Health Care Management Science, Springer, vol. 19(4), pages 313-325, December.
    8. T Joro & E-J Viitala, 2004. "Weight-restricted DEA in action: from expert opinions to mathematical models," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(8), pages 814-821, August.
    9. T. Joro & E-J. Viitala, 1999. "The Efficiency of Public Forestry Organizations: A Comparison of Different Weight Restriction Approaches," Working Papers ir99059, International Institute for Applied Systems Analysis.
    10. Huang, Zhimin & Li, Susan X., 1996. "Dominance stochastic models in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 95(2), pages 390-403, December.
    11. Pereira, Miguel Alves & Camanho, Ana Santos & Figueira, José Rui & Marques, Rui Cunha, 2021. "Incorporating preference information in a range directional composite indicator: The case of Portuguese public hospitals," European Journal of Operational Research, Elsevier, vol. 294(2), pages 633-650.
    12. Javier Salinas-Jimenez & Peter Smith, 1994. "Data envelopment analysis applied to quality in primary health care," Working Papers 124chedp, Centre for Health Economics, University of York.
    13. Ströhl, Florian & Borsch, Erik & Souren, Rainer, 2018. "Integration von Gewichtsrestriktionen in das DEA-Modell nach Charnes, Cooper und Rhodes: Exemplarische Optionen und Auswirkungen," Ilmenauer Schriften zur Betriebswirtschaftslehre, Technische Universität Ilmenau, Institut für Betriebswirtschaftslehre, volume 3, number 32018.
    14. Bozec, Richard & Dia, Mohamed, 2007. "Board structure and firm technical efficiency: Evidence from Canadian state-owned enterprises," European Journal of Operational Research, Elsevier, vol. 177(3), pages 1734-1750, March.
    15. O'Neill, Liam & Rauner, Marion & Heidenberger, Kurt & Kraus, Markus, 2008. "A cross-national comparison and taxonomy of DEA-based hospital efficiency studies," Socio-Economic Planning Sciences, Elsevier, vol. 42(3), pages 158-189, September.
    16. Li, Susan X., 1998. "Stochastic models and variable returns to scales in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 104(3), pages 532-548, February.
    17. De Luca Cardillo, Dorotea & Fortuna, Tiziana, 2000. "A DEA model for the efficiency evaluation of nondominated paths on a road network," European Journal of Operational Research, Elsevier, vol. 121(3), pages 549-558, March.
    18. Thompson, Russell G. & Brinkmann, Emile J. & Dharmapala, P. S. & Gonzalez-Lima, M. D. & Thrall, Robert M., 1997. "DEA/AR profit ratios and sensitivity of 100 large U.S. banks," European Journal of Operational Research, Elsevier, vol. 98(2), pages 213-229, April.
    19. Vladimir Krivonozhko & Finn Førsund & Andrey Lychev, 2015. "Terminal units in DEA: definition and determination," Journal of Productivity Analysis, Springer, vol. 43(2), pages 151-164, April.
    20. Kerstens, Kristiaan & Vanden Eeckaut, Philippe, 1999. "Estimating returns to scale using non-parametric deterministic technologies: A new method based on goodness-of-fit," European Journal of Operational Research, Elsevier, vol. 113(1), pages 206-214, February.

    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:kap:jproda:v:8:y:1997:i:2:p:215-230. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.