IDEAS home Printed from https://ideas.repec.org/a/pal/jorsoc/v55y2004i11d10.1057_palgrave.jors.2601785.html
   My bibliography  Save this article

Sensitivity in data envelopment analysis using an approximate inverse matrix

Author

Listed:
  • L Neralić

    (University of Zagreb)

  • R E Wendell

    (University of Pittsburgh)

Abstract

In this paper, sensitivity analysis of the Charnes–Cooper–Rhodes model in data envelopment analysis (DEA) is studied for the case of perturbation of all outputs and of all inputs of an efficient decision-making unit (DMU). Using an approximate inverse of the perturbed optimal basis matrix, an approximate preservation of efficiency for an efficient DMU under these perturbations is considered. Sufficient conditions for an efficient DMU to preserve its efficiency are obtained in that case. An illustrative example is provided.

Suggested Citation

  • L Neralić & R E Wendell, 2004. "Sensitivity in data envelopment analysis using an approximate inverse matrix," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(11), pages 1187-1193, November.
  • Handle: RePEc:pal:jorsoc:v:55:y:2004:i:11:d:10.1057_palgrave.jors.2601785
    DOI: 10.1057/palgrave.jors.2601785
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/palgrave.jors.2601785
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1057/palgrave.jors.2601785?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. Richard E. Wendell, 1985. "The Tolerance Approach to Sensitivity Analysis in Linear Programming," Management Science, INFORMS, vol. 31(5), pages 564-578, May.
    2. W. Cooper & Shanling Li & L. Seiford & Kaoru Tone & R. Thrall & J. Zhu, 2001. "Sensitivity and Stability Analysis in DEA: Some Recent Developments," Journal of Productivity Analysis, Springer, vol. 15(3), pages 217-246, May.
    3. Seiford, Lawrence M. & Zhu, Joe, 1998. "Stability regions for maintaining efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 108(1), pages 127-139, 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. Darold Barnum & John Gleason, 2011. "Measuring efficiency under fixed proportion technologies," Journal of Productivity Analysis, Springer, vol. 35(3), pages 243-262, June.
    2. Michael Best & Xili Zhang, 2012. "The Efficient Frontier for Weakly Correlated Assets," Computational Economics, Springer;Society for Computational Economics, vol. 40(4), pages 355-375, December.
    3. Neralić, Luka & Wendell, Richard E., 2019. "Enlarging the radius of stability and stability regions in Data Envelopment Analysis," European Journal of Operational Research, Elsevier, vol. 278(2), pages 430-441.
    4. Luka Neralić & Richard E. Wendell, 2019. "Sensitivity in DEA: an algorithmic approach," 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. 27(4), pages 1245-1264, December.
    5. D T Barnum & J M Gleason & B Hemily & J Lin & P Wang, 2010. "Progressing from uncertainty to risk for DEA-based decisions," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(10), pages 1548-1555, October.
    6. Imad Bou-Hamad & Abdel Latef Anouze & Ibrahim H. Osman, 2022. "A cognitive analytics management framework to select input and output variables for data envelopment analysis modeling of performance efficiency of banks using random forest and entropy of information," Annals of Operations Research, Springer, vol. 308(1), pages 63-92, January.

    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. Neralić, Luka & Wendell, Richard E., 2019. "Enlarging the radius of stability and stability regions in Data Envelopment Analysis," European Journal of Operational Research, Elsevier, vol. 278(2), pages 430-441.
    2. Raab, Raymond L. & Feroz, Ehsan Habib, 2007. "A productivity growth accounting approach to the ranking of developing and developed nations," The International Journal of Accounting, Elsevier, vol. 42(4), pages 396-415, December.
    3. Luka Neralić & Richard E. Wendell, 2019. "Sensitivity in DEA: an algorithmic approach," 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. 27(4), pages 1245-1264, December.
    4. Cooper, William W. & Deng, H. & Huang, Zhimin & Li, Susan X., 2004. "Chance constrained programming approaches to congestion in stochastic data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 155(2), pages 487-501, June.
    5. Huyen Nguyen-Thi-Thanh, 2006. "On the Use of Data Envelopment Analysis in Hedge Fund Performance Appraisal," Working Papers halshs-00120292, HAL.
    6. Cherchye, L. & Post, G.T., 2001. "Methodological Advances in Dea," ERIM Report Series Research in Management ERS-2001-53-F&A, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    7. Tortosa-Ausina, Emili, 2004. "An alternative conditioning scheme to explain efficiency differentials in banking," Economics Letters, Elsevier, vol. 82(2), pages 147-155, February.
    8. Dobos, Imre & Vörösmarty, Gyöngyi, 2019. "Inventory-related costs in green supplier selection problems with Data Envelopment Analysis (DEA)," International Journal of Production Economics, Elsevier, vol. 209(C), pages 374-380.
    9. Zhu, Joe, 2001. "Super-efficiency and DEA sensitivity analysis," European Journal of Operational Research, Elsevier, vol. 129(2), pages 443-455, March.
    10. Singh, Sanjeet & Gupta, Pankaj & Bhatia, Davinder, 2005. "Multiparametric sensitivity analysis in programming problem with linear-plus-linear fractional objective function," European Journal of Operational Research, Elsevier, vol. 160(1), pages 232-241, January.
    11. Huan Li & Yehua Dennis Wei & Yuemin Ning, 2016. "Spatial and Temporal Evolution of Urban Systems in China during Rapid Urbanization," Sustainability, MDPI, vol. 8(7), pages 1-17, July.
    12. Fernández, David & Pozo, Carlos & Folgado, Rubén & Jiménez, Laureano & Guillén-Gosálbez, Gonzalo, 2018. "Productivity and energy efficiency assessment of existing industrial gases facilities via data envelopment analysis and the Malmquist index," Applied Energy, Elsevier, vol. 212(C), pages 1563-1577.
    13. Ehrgott, Matthias & Tind, Jørgen, 2009. "Column generation with free replicability in DEA," Omega, Elsevier, vol. 37(5), pages 943-950, October.
    14. Masahiro Inuiguchi & Zhenzhong Gao & Carla Oliveira Henriques, 2023. "Robust optimality analysis of non-degenerate basic feasible solutions in linear programming problems with fuzzy objective coefficients," Fuzzy Optimization and Decision Making, Springer, vol. 22(1), pages 51-79, March.
    15. Sun Meng & Wei Zhou & Jin Chen & Cheng Zhang, 2018. "A synthesized data envelopment analysis model and its application in resource efficiency evaluation and dynamic trend analysis," Energy & Environment, , vol. 29(2), pages 260-280, March.
    16. Lu, Wen-Min & Liu, John S. & Kweh, Qian Long & Wang, Chung-Wei, 2016. "Exploring the benchmarks of the Taiwanese investment trust corporations: Management and investment efficiency perspectives," European Journal of Operational Research, Elsevier, vol. 248(2), pages 607-618.
    17. Hatami-Marbini, Adel & Emrouznejad, Ali & Tavana, Madjid, 2011. "A taxonomy and review of the fuzzy data envelopment analysis literature: Two decades in the making," European Journal of Operational Research, Elsevier, vol. 214(3), pages 457-472, November.
    18. Cheng, Gang & Qian, Zhenhua & Zervopoulos, Panagiotis, 2011. "Overcoming the infeasibility of super-efficiency DEA model: a model with generalized orientation," MPRA Paper 31991, University Library of Munich, Germany.
    19. Brown, Rayna, 2006. "Mismanagement or mismeasurement? Pitfalls and protocols for DEA studies in the financial services sector," European Journal of Operational Research, Elsevier, vol. 174(2), pages 1100-1116, October.
    20. Wang, Wei-Kang & Lu, Wen-Min & Tsai, Chia-Jen, 2011. "The relationship between airline performance and corporate governance amongst US Listed companies," Journal of Air Transport Management, Elsevier, vol. 17(2), pages 148-152.

    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:pal:jorsoc:v:55:y:2004:i:11:d:10.1057_palgrave.jors.2601785. 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.palgrave-journals.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.