Pitfalls and protocols in DEA

Dyson, Robert G.; Allen, Rachel; Camanho, Ana S.; Podinovski, Victor V.; Sarrico, Cláudia S.; Shale, Estelle A.

doi:10.1016/s0377-2217(00)00149-1

Cited by 1,251 publications

(740 citation statements)

References 30 publications

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“…This has been recognized by the literature (Dyson et al, 2001). In recent times, however, some methods have been proposed to overcome these pitfalls.…”

Section: Resultsmentioning

confidence: 99%

On the informativeness of persistence for evaluating mutual fund performance using partial frontiers

Matallín‐Sáez

Soler‐Domínguez

Tortosa‐Ausina

2014

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The last few years have witnessed a rapid evolution in the literature evaluating mutual fund performance using frontier techniques. The instruments applied, mostly DEA (Data Envelopment Analysis) and, to a lesser extent, FDH (Free Disposal Hull), are able to encompass several dimensions of performance, but they also have some disadvantages that might be preventing a wider acceptance. The recently developed order-m and order-α partial frontiers overcome some of the disadvantages (they are robust with respect to extreme values and noise, and do not suffer from the well-known curse of dimensionality) while keeping the main virtues of DEA and FDH (they are fully-nonparametric). In this article we apply not only the non-convex counterpart of DEA (FDH) but also order-m and order-α partial frontiers to a sample of US mutual funds. The results obtained for both order-m and order-α are useful, since a full ranking of the mutual funds' performance can be obtained. We merge these methods with the literature on mutual fund performance persistence. By combining the two literatures we derive an algorithm which establishes how the choice of m and α parameters intrinsic to order-m and order-α (respectively) relate to the existence of performance persistence and the contrarian effect.

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“…This has been recognized by the literature (Dyson et al, 2001). In recent times, however, some methods have been proposed to overcome these pitfalls.…”

Section: Resultsmentioning

confidence: 99%

On the informativeness of persistence for evaluating mutual fund performance using partial frontiers

Matallín‐Sáez

Soler‐Domínguez

Tortosa‐Ausina

2014

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“…In this sense, the paper links with previous work of Avkiran (1999), Belton andVickers (1993), Brown (2006), Dyson et al (2001), Hollingsworth (2008) and Pedraja-Chaparro et al, (1999). Although previous papers already clearly indicated the pitfalls of DEA (Dyson et al, 2001), provided guidelines for novice users (Avkiran, 1999), visual tools for an insightful implementation (Belton and Vickers, 1993), or difficulties and opportunities of efficiency measurement (Hollingsworth, 2008), this paper explicitly targets the mixture of experienced and novice researchers. Indeed, frequently, experienced researchers (e.g., academics or consultants) collaborate with stakeholders (e.g., civil servants or CEOs), who are less aware of the various methodological advances in the literature.…”

Section: Introductionmentioning

confidence: 87%

“…As a rule of thumb, Dyson et al (2001) suggest that the selected inputs and outputs should cover the full range of resources used and outputs produced, among the evaluated entities. We pointed already on the importance of exogenous variables.…”

Section: Performance Comparisonmentioning

confidence: 99%

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COOPER-framework: A unified process for non-parametric projects

Emrouznejad

Witte

2010

European Journal of Operational Research

107

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Practitioners assess performance of entities in increasingly large and complicated datasets. If non-parametric models, such as Data Envelopment Analysis, were ever considered as simple push-button technologies, this is impossible when many variables are available or when data have to be compiled from several sources. This paper introduces by the 'COOPER-framework' a comprehensive model for carrying out non-parametric projects. The framework consists of six interrelated phases:Concepts and objectives, On structuring data, Operational models, Performance comparison model, Evaluation, and Result and deployment. Each of the phases describes some necessary steps a researcher should examine for a well defined and repeatable analysis. The COOPER-framework provides for the novice analyst guidance, structure and advice for a sound non-parametric analysis. The more experienced analyst benefits from a check list such that important issues are not forgotten. In addition, by the use of a standardized framework non-parametric assessments will be more reliable, more repeatable, more manageable, faster and less costly.

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“…These measures are seen in many DEA programs [3], [4]. Today, the DEA method is used in combination with other methods, such as the MPI, to measure efficiency and productivity.…”

Section: Production and Hosting By Ispacs Gmbhmentioning

confidence: 99%

Malmquist Productivity Index In Ratio Data Envelopment Analysis

Dorri¹,

Rostamy-Malkhalifeh²

2017

Data Envelopment Analysis and Decision Science

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The selection of advanced production technologies and the use of data envelopment analysis (DEA) are important complex organizational decisions. The basic DEA models are designed for certain data, while inputs and outputs of real world problems are ratio. This is because the use of specific data is not possible or practical, and appropriately responsive to the given area. This article developed a model capable of computing the Malmquist Productivity Index (MPI) aiming to determine the progress or regression of the units under evaluation in the presence of such data. The proposed model was then applied to a numerical example, and the results were addressed.

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Pitfalls and protocols in DEA

Cited by 1,251 publications

References 30 publications

On the informativeness of persistence for evaluating mutual fund performance using partial frontiers

On the informativeness of persistence for evaluating mutual fund performance using partial frontiers

COOPER-framework: A unified process for non-parametric projects

Malmquist Productivity Index In Ratio Data Envelopment Analysis

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