Units invariant and translation invariant DEA models

Lovell, C. A. Knox; Pastor, Jesús T.

doi:10.1016/0167-6377(95)00044-5

Cited by 320 publications

(154 citation statements)

References 8 publications

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“…In another example, Lovell and Pastor (1995) use the standard deviation for each data. Specifically, they employ the measure (17) where aj represents the standard deviation of the data recorded for input i = 1, ... , m and a: represents the standard deviation for output r = 1, ... , s.…”

Section: Definition and Computational Scheme Of Sbmmentioning

confidence: 99%

“…Although this model can discriminate efficient and inefficient DMUs by the existence of slacks, it has no means to gauge the depth of inefficiency similar to B* in the CCR model. In an attempt to define inefficiency based on the slacks, Pastor (1996), Lovell and Pastor (1995), Cooper and Tone (1997), Thrall (1997) and others have proposed several formulae for finding a scalar measure. The following properties are considered as important in designing the measures.…”

Section: Introductionmentioning

confidence: 99%

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A slacks-based measure of efficiency in data envelopment analysis

Tone

2001

European Journal of Operational Research

4,263

2,012

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In this paper, we will propose a Slacks-Based measure (SBM) of efficiency in DEA. This scalar measure deals directly with the input surplus and the output shortage of the decision making unit (DMU) concerned. It is unit invariant and monotone decreasing with respect to input surplus and output shortage. Furthermore, this measure is decided only by consulting with the reference set of the DMU and is not affected by statistics over the whole data set. The new measure has a close connection with other measures proposed so far, e.g., CCR and BCC. The dual side of this model can be interpreted as profit maximization, in contrast to the ratio maximization of the CCR model. Numerical experiments show its validity as an efficiency measurement tool and its compatibility with other measures of efficiency.

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Section: Definition and Computational Scheme Of Sbmmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

A slacks-based measure of efficiency in data envelopment analysis

Tone

2001

European Journal of Operational Research

4,263

2,012

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“…Also, since all programs have the same structure, apart from the linear normalization condition, it is possible to conduct a uniform comparison of the abilities of each program to satisfy various desirable properties, such as units invariance (Lovell and Pastor (1995)) or translation invariance.…”

Section: Discussionmentioning

confidence: 99%

“…We consider the weighted additive program of Lovell and Pastor (1995), which has the same restrictions as the additive program of Charnes et al (1985), but its objective function is modified through the assignment of weights ( ) Related programs. The CRS weighted additive program of Ali and Seiford (1993), the (standard) additive program of Charnes et al (1985), which takes all weights equal to 1, the enhanced additive program of Charnes et al (1987), (2010)).…”

Section: Additive Dea Programsmentioning

confidence: 99%

Families of linear efficiency programs based on Debreu’s loss function

2011

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Gerard Debreu introduced a well known radial efficiency measure which he called a "coefficient of resource utilization." He derived this scalar from a much less well known "dead loss" function that characterizes the monetary value sacrificed to inefficiency, and which is to be minimized subject to a normalization condition. We use Debreu's loss function, together with a variety of normalization conditions, to generate several popular families of linear efficiency programs. Our methodology also can be employed to generate entirely new families of linear efficiency programs.

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“…The previous CCR DEA model only works on non-negative values and the CCR model utilized in all other sections is not translation invariant, so it cannot be used for the profit efficiency analysis (Lovell and Pastor 1995). On the other hand, the variable returns to scale BCC model of Banker et al (1984) is translation invariant (cf.…”

Section: Profit Efficiency and Entry And Exit Of Medicare Advantage Pmentioning

confidence: 99%

Potential “Savings” of Medicare: The Analysis of Medicare Advantage and Accountable Care Organizations

Brockett

Golden

Yang

2018

North American Actuarial Journal

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Medicare faces significant financial challenges because of rising health care costs. In response, Medicare reform efforts have been testing various payment and service delivery models, including accountable care organizations (ACOs), aiming to reduce expenditures while preserving or enhancing the coordination of quality care. The idea behind ACOs is to form an organizational network to coordinate all care for Medicare beneficiaries and in so doing, at least theoretically, improve quality of care and hopefully reduce medical costs. The purpose of this research is to apply Data Envelopment Analysis (DEA) to assess the potential savings of Medicare obtainable through optimally efficient implementation of ACOs and Medicare Advantage plans. DEA comparisons across plans achieve this purpose by identifying which Medicare plans operate relatively more efficiently and which are inefficient, and additionally, for inefficient plans, the DEA analysis generates target levels of "inputs" and "outputs" required to bring the plan into efficient operation. Knowing sources of inefficiency can also provide insights into Medicare reform, such as Medicare privatization and innovation models. Our results show that Medicare Advantage plans are more efficient in reducing health expenditures but incur higher administrative costs. Health expenditure savings can also be achievable by promoting government-sponsored managed Medicare such as ACOs. Finally, compared to the profit efficiency of Medicaid managed care plans, Medicare Advantage should have the potential for more Medicare market penetration from the supply (insurer) side.

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Units invariant and translation invariant DEA models

Cited by 320 publications

References 8 publications

A slacks-based measure of efficiency in data envelopment analysis

A slacks-based measure of efficiency in data envelopment analysis

Families of linear efficiency programs based on Debreu’s loss function

Potential “Savings” of Medicare: The Analysis of Medicare Advantage and Accountable Care Organizations

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