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 journalArticlepeer-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 languageEnglish
JournalEuropean Journal of Operational Research
Publication statusAccepted for publication - 22 Jun 2021

Keywords

  • robustness and sensitivity analysis
  • stability
  • DEA
  • interval scale data
  • efficiency measure

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