IRMA-International.org: Creator of Knowledge
Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Nonlinear Efficiency in DEA Relative to “Ideal Reference”

Nonlinear Efficiency in DEA Relative to “Ideal Reference”
View Sample PDF
Author(s): P. Sunil Dharmapala (College of Economics & Political Science, Sultan Qaboos University, Sultanate of Oman)
Copyright: 2014
Pages: 11
Source title: Encyclopedia of Business Analytics and Optimization
Source Author(s)/Editor(s): John Wang (Montclair State University, USA)
DOI: 10.4018/978-1-4666-5202-6.ch146

Purchase

View Nonlinear Efficiency in DEA Relative to “Ideal Reference” on the publisher's website for pricing and purchasing information.

Abstract

Several researchers in the past have emphasized the importance of computing efficiency measures in Data Envelopment Analysis (DEA) relative to a best-practice benchmark. Thompson et al. (1995) introduced a nonlinear efficiency measure with linked-cone (LC) assurance-regions (AR) in DEA. In this paper, we compute Thompson-Thrall's measure vis-à-vis linear efficiency measures of CCR (Charnes et al., 1978), BCC (Banker et al., 1984), CCR/AR and BCC/AR (Thompson et al., 1992), relative to “ideal reference”- an industry average. We demonstrate the computations in an application to a set of banks and show that the nonlinear measure is stricter than the linear measures.

Related Content

Dina Darwish. © 2024. 48 pages.
Dina Darwish. © 2024. 51 pages.
Smrity Prasad, Kashvi Prawal. © 2024. 19 pages.
Jignesh Patil, Sharmila Rathod. © 2024. 17 pages.
Ganesh B. Regulwar, Ashish Mahalle, Raju Pawar, Swati K. Shamkuwar, Priti Roshan Kakde, Swati Tiwari. © 2024. 23 pages.
Pranali Dhawas, Abhishek Dhore, Dhananjay Bhagat, Ritu Dorlikar Pawar, Ashwini Kukade, Kamlesh Kalbande. © 2024. 24 pages.
Pranali Dhawas, Minakshi Ashok Ramteke, Aarti Thakur, Poonam Vijay Polshetwar, Ramadevi Vitthal Salunkhe, Dhananjay Bhagat. © 2024. 26 pages.
Body Bottom