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Performance evaluation and quota allocation for multiple undesirable outputs based on the uniform frontier

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  • Chenpeng Feng
  • Feng Chu
  • Nan Zhou
  • Gongbing Bi
  • Jingjing Ding

Abstract

The zero sum gains data envelopment analysis (ZSG-DEA) models and the corresponding uniform frontier method are widely applied for performance evaluation and resource/quota allocation in practice. Nevertheless, assuming variable returns-to-scale (VRS) and a situation with multiple ZSG inputs/outputs, the existing ZSG-DEA models may have no feasible solution for some efficient decision-making units and hence the uniform frontier cannot always be determined. In this study, two improved ZSG-DEA models are proposed, one assuming constant returns-to-scale (CRS) and the other VRS. Then, a general iterative algorithm is developed for resource/quota allocation based on the uniform frontier. We prove that the proposed method can always allocate multiple resources/quotas under both CRS and VRS assumptions, which extends the existing uniform frontier method research. An application to environmental performance evaluation and quota allocation for 30 administrative regions in China is presented to elucidate the main ideas.

Suggested Citation

  • Chenpeng Feng & Feng Chu & Nan Zhou & Gongbing Bi & Jingjing Ding, 2019. "Performance evaluation and quota allocation for multiple undesirable outputs based on the uniform frontier," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 70(3), pages 472-486, March.
    • Handle: RePEc:taf:tjorxx:v:70:y:2019:i:3:p:472-486
    DOI: 10.1080/01605682.2018.1447248
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    Cited by:

    1. Lozano, Sebastián, 2023. "Bargaining approach for efficiency assessment and target setting with fixed-sum variables," Omega, Elsevier, vol. 114(C).
    2. Thanasis Bouzidis & Giannis Karagiannis, 2022. "Extending the zero-sum gains data envelopment analysis model," Journal of Productivity Analysis, Springer, vol. 58(2), pages 171-184, December.
    3. Bouzidis, Thanasis & Karagiannis, Giannis, 2022. "An alternative ranking of DMUs performance for the ZSG-DEA model," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    4. Tingting Liu & Zichen Zheng & Yuneng Du, 2021. "Evaluation on regional science and technology resources allocation in China based on the zero sum gains data envelopment analysis," Journal of Intelligent Manufacturing, Springer, vol. 32(6), pages 1729-1737, August.

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