Methodological Advances in DEA: A survey and an application for the Dutch electricity sector

Cherchye, Laurens; Post, Thierry

doi:10.1111/1467-9574.00238

Cited by 38 publications

(23 citation statements)

References 99 publications

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“…Optimal weights can become (and often are) zero giving rise to slacks. Slacks indicate Pareto-Koopmans inefficiency (Cherchye and Post, 2003). Allocatively inefficient DMU's can reduce inputs or increase outputs without changing efficiency.…”

Section: Naïve Efficiency Measurement With Multiple Inputs and Outputsmentioning

confidence: 99%

When does data envelopment analysis outperform a naïve efficiency measurement model?

Büschken

2009

European Journal of Operational Research

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Section: Naïve Efficiency Measurement With Multiple Inputs and Outputsmentioning

confidence: 99%

When does data envelopment analysis outperform a naïve efficiency measurement model?

Büschken

2009

European Journal of Operational Research

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“…Indeed, the model calculates the efficiencies of the water service operators combining the economic and technical perspectives. As Cherchye and Post [28] (p. 424) emphasize "[...] Firms may succeed in minimizing relatively inexpensive inputs and maximizing inexpensive outputs. In many cases, substituting expensive inputs by inexpensive ones and substituting inexpensive outputs by expensive ones, even in a technically inefficient way, can improve economic performance.…”

Section: The Water Service Utility Operator Production Modelmentioning

confidence: 99%

Efficiency, Conflicting Goals and Trade-Offs: A Nonparametric Analysis of the Water and Wastewater Service Industry in Italy

Storto

2018

Sustainability

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This paper presents a benchmarking study of the water and wastewater industry in Italy. A three-stage modeling approach was implemented to measure the efficiency of 53 utility operators. This approach is based on the implementation of network and conventional data envelopment analysis (DEA) to model the production process of the water service utility operators. In comparison to the conventional black-box or one-stage production model generally adopted in previous studies, the proposed approach provides information relative to the different efficiency components of the stages and blocks of the water service production process and its overall efficiency. Further, by shifting the efficiency analysis to a two-dimensional performance space, i.e., resource and market-efficiency, it offers a more comprehensive view of the water service industry and allows accounting for different business goals at the same time and for an investigation of industry trade-offs. Results show that the operators' efficiencies in the Italian water service industry are generally variable and low. There are no water service utilities which are 100% efficient from the resource-efficiency perspective, and the maximum efficiency score is 0.545. Efficiency measurements suggest that there is a general orientation of the Italian water industry to not invest in upgrading and improving the infrastructure assets, and achieving an acceptable efficiency in the operations is critical to delivering water services to market in an efficient way. Only one utility operator is 100% efficient from the market-efficiency perspective. The low tariffs adopted by the water service operators do not allow the gaining of satisfactory service remuneration and the achievement of long-term business sustainability. The joint analysis of the resource and market efficiency scores indicates that there is a trade-off between the corresponding business goals.

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“…This follows from the fact that in Axiom 3 we do not assume convexity in both inputs and outputs simultaneously. As discussed in depth in Cherchye and Post (2003), this assumption is often problematic in practical applications. However, it is fairly straightforward to change Axiom 3, and correspondingly the linear programs (LP-1) and (LP-2), to allow for convexity in both inputs and outputs.…”

Section: Linear Programming Formulationmentioning

confidence: 99%

Coordination efficiency in multi-output settings: a DEA approach

2015

Self Cite

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We extend a recently developed methodology for measuring the efficiency of Decision Making Units in the case of multiple inputs and outputs. The methodology accounts for economies of scope through the use of joint inputs, and explicitly includes information about the allocation of inputs to particular outputs. We focus on possible efficiency gains by reallocating inputs across outputs. We introduce a measure of coordination efficiency, which captures these efficiency gains. We demonstrate the practical usefulness of our methodology through an efficiency analysis of education and research conducted at US universities.

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Methodological Advances in DEA: A survey and an application for the Dutch electricity sector

Cited by 38 publications

References 99 publications

When does data envelopment analysis outperform a naïve efficiency measurement model?

When does data envelopment analysis outperform a naïve efficiency measurement model?

Efficiency, Conflicting Goals and Trade-Offs: A Nonparametric Analysis of the Water and Wastewater Service Industry in Italy

Coordination efficiency in multi-output settings: a DEA approach

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