Data envelopment analysis revisited: a neophyte’s perspective

Data envelopment analysis (DEA) is an approach to efficiency measurement that has been the subject of much academic enquiry. During the last two decades or so thousands of papers, books and dissertations have been written. However, given the fast-growing nature of this field, it is essential to provide comprehensive and systematic guides. This paper revisits DEA in a language palatable to educators, students and practitioners. It defines the approach, illustrates its use and discusses its strengths and limitations. After discussing the basic models, it describes some of its extensions, applications and software available. The issues surrounding the practical application of DEA are also reviewed. The paper concludes by suggesting that the use of DEA is still the province of specialists and that further research should consider ways to make it more widely accessible.