Slides

7. Data Envelopment Analysis
• From seminal work of Charnes et al. (1978), DEA have emerged as a major tool
for analyzing efficiency.
• We usually use envelopment form of DEA model which enforce nominator or
denominator to 1
Input Oriented Model
Max
s.
t.
u
− vX + uY ≥ 0
r
, v
m
∑
j=
1
j
s
∑
r=
1
v
u
j
≥ 0
r
x
ij
y
ir
= 1
Output Oriented Model
Min
s.
t.
u
∑
r=
1
− vX + uY ≥ 0
r
s
, v
j
m
∑
j=
1
u
r
v
y
≥ 0
j
ir
x
ij
= 1
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