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

Nasim Nasrabadi; Akram Dehnokhalaji; Pekka J. Korhonen; Banu Lokman; Jyrki Wallenius

doi:10.1016/j.ejor.2021.06.049

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

Nasim Nasrabadi, Akram Dehnokhalaji, Pekka J. Korhonen, Banu Lokman, Jyrki Wallenius^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

Abstract

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.

Original language	English
Pages (from-to)	1151-1161
Number of pages	11
Journal	European Journal of Operational Research
Volume	297
Issue number	3
Early online date	12 Nov 2021
DOIs	https://doi.org/10.1016/j.ejor.2021.06.049
Publication status	Published - 16 Mar 2022

Keywords

robustness and sensitivity analysis
stability
DEA
interval scale data
efficiency measure

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10.1016/j.ejor.2021.06.049

1-s2.0-S0377221721005658-mainFinal published version, 1.41 MBLicence: CC BY

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title = "Robustness of efficiency scores in data envelopment analysis with interval scale data",

abstract = "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.",

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author = "Nasim Nasrabadi and Akram Dehnokhalaji and Korhonen, {Pekka J.} and Banu Lokman and Jyrki Wallenius",

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AU - Nasrabadi, Nasim

AU - Dehnokhalaji, Akram

AU - Korhonen, Pekka J.

AU - Lokman, Banu

AU - Wallenius, Jyrki

PY - 2022/3/16

Y1 - 2022/3/16

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

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DO - 10.1016/j.ejor.2021.06.049

M3 - Article

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EP - 1161

JO - European Journal of Operational Research

JF - European Journal of Operational Research

IS - 3

ER -

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

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Keywords

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