TY - JOUR

T1 - Robustness of efficiency scores in data envelopment analysis with interval scale data

AU - Nasrabadi, Nasim

AU - Dehnokhalaji, Akram

AU - Korhonen, Pekka J.

AU - Lokman, Banu

AU - Wallenius, Jyrki

N1 - 24 months embargo. Elsevier.

PY - 2021/6/22

Y1 - 2021/6/22

N2 - Our paper focuses on a robustness analysis of efficiency scores in the context of Data Envelopment Analysis (DEA) assuming interval scale data, as defined in A. Dehnokhalaji, P. J. Korhonen, M. K¨oksalan, N. Nasrabadi and J. Wallenius, “Efficiency Analysis to incorporate interval scale data”, European Journal of Operational Research 207 (2), 2010, pp. 1116-1121. We first show that the definition of the efficiency score used in our paper is a well-defined measure according to Aparacio and Pastor (J. Aparacio and J. T. Pastor, “A well-defined efficiency measure for dealing with closest targets in DEA”, Applied Mathematics and Computation 219 (17), 2013, pp. 9142-9154.). Next, we characterize how robust the efficiency scores are with respect to improvements and deteriorations of inputs and outputs. We illustrate our analysis with two examples: a simple numerical example and a more complex example using real-world data.

AB - Our paper focuses on a robustness analysis of efficiency scores in the context of Data Envelopment Analysis (DEA) assuming interval scale data, as defined in A. Dehnokhalaji, P. J. Korhonen, M. K¨oksalan, N. Nasrabadi and J. Wallenius, “Efficiency Analysis to incorporate interval scale data”, European Journal of Operational Research 207 (2), 2010, pp. 1116-1121. We first show that the definition of the efficiency score used in our paper is a well-defined measure according to Aparacio and Pastor (J. Aparacio and J. T. Pastor, “A well-defined efficiency measure for dealing with closest targets in DEA”, Applied Mathematics and Computation 219 (17), 2013, pp. 9142-9154.). Next, we characterize how robust the efficiency scores are with respect to improvements and deteriorations of inputs and outputs. We illustrate our analysis with two examples: a simple numerical example and a more complex example using real-world data.

KW - robustness and sensitivity analysis

KW - stability

KW - DEA

KW - interval scale data

KW - efficiency measure

M3 - Article

JO - European Journal of Operational Research

JF - European Journal of Operational Research

SN - 0377-2217

ER -