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Bounded and discrete data and Likert scales in data envelopment analysis: application to regional energy efficiency in China

Author

Listed:
  • Ya Chen

    (University of Science and Technology of China)

  • Wade D. Cook

    (York University)

  • Juan Du

    (Tongji University)

  • Hanhui Hu

    (Southeast University)

  • Joe Zhu

    (Nanjing Audit University
    Worcester Polytechnic Institute)

Abstract

In data envelopment analysis (DEA), it is usually assumed that all data are continuous and not restricted by upper and/or lower bounds. However, there are situations where data are discrete and/or bounded, and where projections arising from DEA models are required to fall within those bounds. Such situations can be found, for example, in cases where percentage data are present and where projected percentages must not exceed the requisite 100 % limit. Other examples include Likert scale data. Using existing integer DEA approaches as a backdrop, the current paper presents models for dealing with bounded and discrete data. Our proposed models address the issue of constraining DEA projections to fall within imposed bounds. It is shown that Likert scale data can be modeled using the proposed approach. The proposed DEA models are used to evaluate the energy efficiency of 29 provinces in China.

Suggested Citation

  • Ya Chen & Wade D. Cook & Juan Du & Hanhui Hu & Joe Zhu, 2017. "Bounded and discrete data and Likert scales in data envelopment analysis: application to regional energy efficiency in China," Annals of Operations Research, Springer, vol. 255(1), pages 347-366, August.
    • Handle: RePEc:spr:annopr:v:255:y:2017:i:1:d:10.1007_s10479-015-1827-3
    DOI: 10.1007/s10479-015-1827-3
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    11. Kalinichenko, Olena & Amado, Carla A.F. & Santos, Sérgio P., 2022. "Exploring the potential of Data Envelopment Analysis for enhancing pay-for-performance programme design in primary health care," European Journal of Operational Research, Elsevier, vol. 298(3), pages 1084-1100.
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    13. Shuanglian Chen & Gaoke Liao & Benjamin M. Drakeford & Pierre Failler, 2019. "The Non-Linear Effect of Financial Support on Energy Efficiency: Evidence from China," Sustainability, MDPI, vol. 11(7), pages 1-16, April.
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