The measurement of relative efficiency using data envelopment analysis with assurance regions that link inputs and outputs

M. Khalili*, A. S. Camanho, M. C.A.S. Portela, M. R. Alirezaee

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

44 Citations (Scopus)

Abstract

The most popular weight restrictions are assurance regions (ARs), which impose ratios between weights to be within certain ranges. ARs can be categorized into two types: ARs type I (ARI) and ARs type II (ARII). ARI specify bounds on ratios between input weights or between output weights, whilst ARII specify bounds on ratios that link input to output weights. DEA models with ARI successfully maximize relative efficiency, but in the presence of ARII the DEA models may under-estimate relative efficiency or may become infeasible. In this paper we discuss the problems that can occur in the presence of ARII and propose a new nonlinear model that overcomes the limitations discussed. Also, the dual model is described, which enables the assessment of relative efficiency when trade-offs between inputs and outputs are specified. The application of the model developed is illustrated in the efficiency assessment of Portuguese secondary schools.

Original languageEnglish
Pages (from-to)761-770
Number of pages10
JournalEuropean Journal of Operational Research
Volume203
Issue number3
DOIs
Publication statusPublished - 16 Jun 2010

Keywords

  • Assurance regions type II
  • Data envelopment analysis
  • Weight restrictions

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