Guide Handbook on Data Envelopment Analysis

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Handbook on Data Envelopment Analysis

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    Introduction to basics of Data Envelopment Analysis (DEA)

    Honglei Xu. Performance Measurement in Corporate Governance. An exercise right after introducing the book an easy, rapid-reading text and works as an entry generalized formulation firms up the concepts of frac- point for those who want to step into this realm. It takes tional DEA before the author introduces dual formula- the reader from terminology and concepts to the evo- tion. The matrix formulation and non-Archimedean lution and application of the technique.

    The emphasis of the book is the formal theory of DEA, is immediately followed by on practice rather than abstract theory. This sequence capitalizes on the interest the terms, basic concepts, and graphical illustrations aroused so far through the introductory chapters. The two-stage optimization procedure is yet on the size of the problem, and interfacing with other another distraction which could have been avoided if common software.

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    The format of data input, specifica- it were taken to the Appendix; it is not used further in tion of variables, syntax of command, and snapshots of the text. In the section on interpretation of dual DEA the various intermediate and final outputs along with formulation Chapter 2, p 54 , the example involving their interpretation make very interesting reading. This firms P, Q, R and T is inserted unnecessarily. It creates is very helpful for readers who want to try out DEA.

    This helps tion; and simple spread sheet computation in MS Excel. This chapter also introduces the BCC formulation, implementation, sensitivity analysis of the Banker, Charnes, and Cooper model quite succinctly model, post-DEA analysis, validation and reaffirmation backed by good references but is marred by a number of the results through techniques such as regression, etc. With this chapter, the basic The problems attempt to demonstrate full-fledged im- theory and evolution of DEA during its foundation years plementation which ranges from comparative perform- is covered exhaustively and the text is fairly easy to ance of schools to productivity assessment of state trans- understand.

    Beyond this chapter, the book shifts to port undertakings in India; from comparative risk as- application of theory. This wide range of problems adds which discusses Multiplicative DEA models, Additive to the richness of the text especially when the studies models, Window Analysis and Malmquist Productivity have been carried out by the author himself.

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    Index Approach. It gives thumb- ment of categorical variables, and incorporation of judg- rules to those who want to use DEA as a black box. If mental and subjective weights, are discussed.

    Examples for each type of variant ploy them, and also conduct post-DEA analysis. The chapter ends with a graphical frontier analysis The chapter ends with three exercise problems and a wherein two schools with different efficiencies have the note for advanced readers on other DEA models.

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