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Frontier Analysis with DEA

In: Measuring Productivity in Education and Not-for-Profits

Author

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  • Kenneth Moore

    (The Nous Group)

Abstract

This chapter introduces the concept of productivity frontier analysis and appropriate applications of the method. It explains how data envelopment analysis (DEA) is one of the most popular techniques for conducting a frontier analysis. It then provides a walk-through for how the DEA algorithm works. The tutorial in this chapter explores a case study of five hypothetical not-for-profit organizations. It demonstrates how to use DEA on data from these organizations and how to interpret results. The chapter stresses how the direct results of DEA cannot be taken at face value, especially when the data elements being examined are non-priced. It explains how risks emerge if data are not interrogated further.

Suggested Citation

  • Kenneth Moore, 2021. "Frontier Analysis with DEA," Management for Professionals, in: Measuring Productivity in Education and Not-for-Profits, chapter 6, pages 85-98, Springer.
    • Handle: RePEc:spr:mgmchp:978-3-030-72965-3_6
    DOI: 10.1007/978-3-030-72965-3_6
    as

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