Measuring overall efficiency and effectiveness using DEA

Research output: Contribution to journalJournal articleResearchpeer-review

This paper presents a framework where data envelopment analysis (DEA) is used to measure overall efficiency and show how to apply this framework to assess effectiveness for more general behavioral goals. The relationships between various cone-ratio DEA models and models to measure overall efficiency are clarified. Specifically it is shown that as multiplier cones tighten, the cone-ratio DEA models converge to measures of overall efficiency. Furthermore, it is argued that multiplier cone and cone-ratio model selection must be consistent with the behavioral goals assigned or assumed for purposes of analysis. Consistent with this reasoning, two new models are introduced to measure effectiveness when value measures are represented by separable or linked cones, where the latter can be used to analyze profit-maximizing effectiveness.

Original languageEnglish
JournalEuropean Journal of Operational Research
Volume178
Issue number1
Pages (from-to)305-321
Number of pages17
ISSN0377-2217
DOIs
Publication statusPublished - 2007
Externally publishedYes

    Research areas

  • Behavioral goals, Cone ratio weight restrictions, Data envelopment analysis (DEA), Effectiveness, Efficiency

ID: 227788434