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Data Envelopment Analysis in Stata

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  • Chonjoo Lee

    (Defense Science and Technology Department, Korea National Defense University)

  • Ji Yong-Bae

    (Defense and Technology Department, Korea National Defense University)

Abstract

In this presentation, we present a procedure and an illustrative application of a user-written Data Envelopment Analysis (DEA) program in Stata. DEA is a linear programming method for assessing the efficiency and productivity of units and a popular managerial tool for measuring performance of organizations. It has been used widely for assessing the efficiency of public and private sectors, such as banks, airlines, hospitals, universities, defense firms, and manufacturers. The DEA program in Stata will allow DEA users to easily access the Stata system and to conduct not only the standard optimization procedure but also more extended managerial analysis. The Mata programming, an extension of the DEA program code developed in the Stata programming language, will be discussed for the cases where the data capacity matters. We will also discuss the returns to scale options in DEA. Unfortunately, to date no DEA options are available in Stata, but an SFA model is available. The user-written DEA approach in Stata will provide some possible future extensions of Stata programming in DEA.

Suggested Citation

  • Chonjoo Lee & Ji Yong-Bae, 2009. "Data Envelopment Analysis in Stata," DC09 Stata Conference 4, Stata Users Group, revised 29 Dec 2009.
    • Handle: RePEc:boc:dcon09:4
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    File URL: http://repec.org/dcon09/dc09_lee_ji.pdf
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    File URL: http://repec.org/dcon09/dea.ado
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    File URL: http://repec.org/dcon09/seco_stage_regression.dta
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    File URL: http://repec.org/dcon09/cooper_table3.7.dta
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    File URL: http://repec.org/dcon09/coelli_table6.4.dta
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    Cited by:

    1. José Solana‐Ibáñez & Manuel Caravaca‐Garratón, 2021. "Stakeholder engagement and corporate social reputation: The influence of exogenous factors on efficiency performance (stakeholder engagement and exogenous factors): Stakeholder engagement and exogenou," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1891-1905, November.
    2. Shu-Fen Chuah & Swee-Sim Foong, 2019. "Managerial Ability and Firm Performance in Malaysia: Do Familiness and Foreignness of the CEOs Matter?," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-31, September.
    3. Abdullah Ajlouni & Francisco Bastida & Mohammad Nurunnabi, 2024. "Corporate Governance and Employee Productivity: Evidence from Jordan," IJFS, MDPI, vol. 12(4), pages 1-17, September.
    4. Gosse A.G. Alserda & Jacob A. Bikker & Fieke S.G. Van Der Lecq, 2018. "X-efficiency and economies of scale in pension fund administration and investment," Applied Economics, Taylor & Francis Journals, vol. 50(48), pages 5164-5188, October.

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