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Revisiting dual-role factors in data envelopment analysis: derivation and implications

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  • Wen-Chih Chen

Abstract

Data Envelopment Analysis (DEA) is a mathematical programming method to evaluate relative performance. Typical DEA studies consider a production process transforming inputs to outputs. In some cases, however, some factors can be both inputs and outputs simultaneously and are termed dual-role factors. For example, research funding can be an input that strengthens a university's academic performance and the actual funds can be an output. This article investigates the problem of how to incorporate dual-role factors in DEA. Rather than proposing an ad hoc evaluation model directly, this article considers the concept of “joint technology,” two individual production processes acting in common by summarizing the intuitive thinking. The efficiency evaluation models, based on variant assumptions, thus can be axiomatically derived, validated, and extended. How to determine the input/output tendency of a dual-role factor based on the evaluating results is shown and explained from different aspects. It is concluded that the tendency is a property on the projected boundary, not the data point itself.

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  • Wen-Chih Chen, 2014. "Revisiting dual-role factors in data envelopment analysis: derivation and implications," IISE Transactions, Taylor & Francis Journals, vol. 46(7), pages 653-663.
    • Handle: RePEc:taf:uiiexx:v:46:y:2014:i:7:p:653-663
    DOI: 10.1080/0740817X.2012.721943
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    Cited by:

    1. Gabriel Villa & Sebastián Lozano, 2016. "DEA with non-monotonic variables. Application to EU governments’ macroeconomic efficiency," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 67(12), pages 1510-1523, December.
    2. Toloo, Mehdi & Ebrahimi, Bohlool & Amin, Gholam R., 2021. "New data envelopment analysis models for classifying flexible measures: The role of non-Archimedean epsilon," European Journal of Operational Research, Elsevier, vol. 292(3), pages 1037-1050.
    3. Rita Shakouri & Maziar Salahi & Sohrab Kordrostami & Jie Wu, 2019. "Flexible measure in the presence of the partial input to output impacts process," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 29(3), pages 77-98.

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