Distance measure using DEA

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Description

Implements Charnes & Cooper's data envelopment analysis (radial & oriented measure).

Usage

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dm.dea(xdata, ydata, rts="crs", orientation,
       se=FALSE, sg="ssm", date=NULL, ncv=NULL, env=NULL, cv="convex", o=NULL)

Arguments

xdata

Input(s) vector (n by m)

ydata

Output(s) vector (n by s)

rts

Returns to scale assumption
"crs" Constant RTS (default)
"vrs" Variable RTS
"irs" Increasing RTS
"drs" Decreasing RTS

orientation

Orientation of the measurement
"i" Input-orientation
"o" Output-orientation

se

Implements Anderson & Peterson's super-efficiency model if TRUE

sg

Employs second-stage optimization
"ssm" Slack-sum maximization (default)
"max" Date-sum maximization (only if date is defined)
"min" Date-sum minimization (only if date is defined)

date

Production date (n by 1)

ncv

Non-controllable variable index(binary) for internal NDF (1 by (m+s))

env

Environment index for external NDF (n by 1)

cv

Convexity assumption
"convex" Convexity holds (default)
"fdh" Free disposal hull (this will override rts)

o

DMU index to calc. NULL(default) will calc for all

Value

$eff

Efficiency score

$lambda

Intensity vector

$xslack

Input slack

$yslack

Output slack

$vx

Input (dual) weight

$uy

Output (dual) weight

$w

Free (dual) variable

Author(s)

Dong-Joon Lim, PhD

References

Charnes, Abraham, William W. Cooper, and Edwardo Rhodes. "Measuring the efficiency of decision making units." European journal of operational research 2.6 (1978): 429~444.

Charnes, Abraham, William W. Cooper, and Edwardo Rhodes. "Evaluating program and managerial efficiency: an application of data envelopment analysis to program follow through." Management science 27.6 (1981): 668~697.

Banker, Rajiv D., and Richard C. Morey. "Efficiency analysis for exogenously fixed inputs and outputs." Operations Research 34.4 (1986): 513~521.

Ruggiero, John. "On the measurement of technical efficiency in the public sector." European Journal of Operational Research 90.3 (1996): 553~565.

Fried, Harold O., CA Knox Lovell, and Shelton S. Schmidt, eds. The measurement of productive efficiency and productivity growth. Oxford University Press, 2008.

See Also

dm.ddf Distance measure using DDF
dm.dea Distance measure using DEA
dm.hdf Distance measure using HDF
dm.sbm Distance measure using SBM
dm.sf Distance measure using SF

Examples

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# Reproduce Table 3.9 (p.348) in Fried, H.O. et al.(2008)
  # ready
  X <- data.frame(x1 = c(8, 6,   3,   10, 6,   8,   8, 4),
                  x2 = c(8, 4.6, 1.9, 9,  3.6, 3.6, 9, 1.9))
  Y <- data.frame(y1 = c(8, 5,   2,   9,  4.5, 4.5, 7, 2))
  C <- data.frame(x1 = 0, x2 = 1, y1 = 0)

  # go
  data.frame(ALL_CRS = dm.dea(X, Y, "crs", "i")$eff,
             ALL_VRS = dm.dea(X, Y, "vrs", "i")$eff,
             NDF_CRS = dm.dea(X, Y, "crs", "i", ncv = C)$eff,
             NDF_VRS = dm.dea(X, Y, "vrs", "i", ncv = C)$eff,
             row.names = LETTERS[1 : 8])