A slacks-based measure of efficiency in data envelopment analysis

Abstract. Most of the literature related to the measurement of economic efficiency has based its analysis either on parametric or on non-parametric frontier methods. The choice of estimation method has been an issue of debate, with some researchers preferring the parametric and others the non-parametric approach. The aim of this paper is to provide a critical and detailed review of both core frontier methods. In our opinion, no approach is strictly preferable to any other. Moreover, a careful consideration of their main advantages and disadvantages, of the data set utilized, and of the intrinsic characteristics of the framework under analysis will help us in the correct implementation of these techniques. Recent developments in frontier techniques and economic efficiency measurement such as Bayesian techniques, bootstrapping, duality theory and the analysis of sampling asymptotic properties are also considered in this paper.

show abstract

“…11. The slack-based measure of efficiency (SBM) model developed by Tone (2001) is an example of a non-oriented model. 12.…”

Section: Discussionmentioning

confidence: 99%

Economic Efficiency and Frontier Techniques

Zamorano

2004

Journal of Economic Surveys

308

176

View full text Add to dashboard Cite

show abstract

“…Unlike previous studies, the particular features of UK banking data require additional types of DEA models. Therefore, we shall use both input-and output-oriented CCR models (Charnes et al 1978); both inputand output-oriented BCC models (Banker et al 1984); BCC models without explicit inputs, BCC-WEI, or without explicit outputs, BCC-WEO (Lovell and Pastor 1999); input-oriented, output-oriented, and non-oriented SBM models (Tone 2001); and SBM-WEI model (Liu et al 2011) and SBM-WEO model that we propose. CCR and BCC models are described in Table 1, BCC models without explicit inputs or outputs are described in Table 2, SBM models are described in Table 3, and SBM models without explicit inputs or outputs are described in Table 4, where θ k denotes the technical efficiency of DMU k and measures the efficiency with which DMU k transforms inputs into outputs, which reflects the quality of its management decisions, λ j denotes the weight assigned to DMU j in constructing the "ideal" benchmark of DMU k ; that is, its projection on the efficiency frontier, and s − i,k and s + r,k denote the slacks in input i and output r , respectively, which represent input excess and output shortfall.…”

Section: A Dea Analysis With Regression-based Feedback Mechanismmentioning

confidence: 99%

Assessing efficiency profiles of UK commercial banks: a DEA analysis with regression-based feedback

Ouenniche

Carrales

2018

Ann Oper Res

View full text Add to dashboard Cite

Data envelopment analysis (DEA) has witnessed increasing popularity in banking studies since 1985. In this paper, we propose a new DEA-based analysis framework with a regression-based feedback mechanism, where regression analysis provides DEA with feedback that informs about the relevance of the inputs and the outputs chosen by the analyst. Unlike previous studies, the DEA models used within the proposed framework could use both inputs and outputs, only inputs, or only outputs. So far, the UK banking sector remains relatively under researched despite its crucial importance to the UK economy. We use the proposed framework to address several research questions related to both the efficiency of the UK commercial banking sector and DEA analyses with and without regression-based feedback. Empirical results suggest that, on average, the commercial banks operating in the UK-whether domestic or foreign-are yet to achieve acceptable levels of overall technical efficiency, pure technical efficiency, and scale efficiency. On the other hand, DEA analyses with and without a linear regression-based feedback mechanism seem to provide consistent findings; however, in general DEA analyses without feedback tend to over-or under-estimate efficiency scores depending on the orientation of the analyses. Furthermore, in general, a linear regression-based feedback mechanism proves effective at improving discrimination in DEA analyses unless the initial choice of inputs and outputs is well informed.Keywords Data envelopment analysis · Efficiency · UK commercial banks · DEA models without explicit inputs · DEA models without explicit outputs

show abstract

“…Greenhouse gas emissions are expressed as kilograms of carbon dioxide equivalents emitted per unit output. It includes carbon dioxide equivalents emitted from the treatment of waste streams and the burning of fuel needed to generate the energy for the process [15]. The contributors to GWP is calculated using Simple Carbon Calculator.…”

Section: Gwpmentioning

confidence: 99%

An Environmental Sustainability Assessment of Energy Efficiency for Production Systems

Kluczek¹

2018

dtetr

View full text Add to dashboard Cite

Measuring energy has been widely considered as one of the most cost-effective ways to improve energy efficiency leading to the energy sustainability by decreasing impact on the environment. The literature on energy efficiency and sustainability assessment methods, applied on the industrial processes is still under development. With regard to the production systems, activities mainly address separate improvement measures for energy savings, but there is no methodology for assessing the integrated effects from a combined analysis of energy, pollutions, and benefits so far. The aim of the paper is to provide a new look at an environmental sustainability assessment of energy-efficiency in production systems combining LCA-based methods energy efficiency optimization technique, and Data Envelopment Analysis. The results show mitigation of energy impact on the environmental bringing net benefits in nine production systems. It might contribute how the application of the assessment method can contribute towards developing the environmental sustainability performance measure within them.

show abstract

A slacks-based measure of efficiency in data envelopment analysis

Cited by 3,974 publications

References 20 publications

Economic Efficiency and Frontier Techniques

Economic Efficiency and Frontier Techniques

Assessing efficiency profiles of UK commercial banks: a DEA analysis with regression-based feedback

An Environmental Sustainability Assessment of Energy Efficiency for Production Systems

Contact Info

Product

Resources

About