DEA definition & description Flashcards
L’efficience technique résulte …
de la possibilité d’éviter du gaspillage en obtenant le maximum d’offre permis par une quantité donnée d’entrants ou en employant une quantité d’entrants minimale pour parvenir à un niveau d’offre objectif, concept cohérent avec le principe de dualité de l’optimisation mathématique.
The main differences between the models stem from several factors, such as :
- taking or not taking into account the existence of economies of scale
- the geometric form of the efficiency frontier
- the way in which inefficient units are projected on the frontier
For more details on
model development, see :
Fare et al. (1994), Charnes et al. (1995), Coelli (1996), Coelli et al. (1998), Cooper et al. (2000) and Thanassoulis (2001).
In order to solve the linear-programming problem, the user must specify three
characteristics of the model:
- the input-output orientation system
- the returns-to-scale
- the weights of the evaluation system
The choice of input- or output-oriented DEA is based on :
the market conditions of the DMU.
As a general rule of thumb:
In competitive markets, the DMUs are output-oriented,
since we assume that inputs are under the control of the DMU, which then aims to maximise its output, this being subject to market demand and outside the control of the DMU.
With exogenous inputs, the production function is the natural choice (Khumbhakar, 1987).
The CRS assumption means that:
a proportionate increase to inputs should result in
an equopropotionate increase to outputs
What geometrical shape does the envelopment surface have?
piecewise-linear
Who said that for the OUTPUTS the dictum ‘‘more is better’’ has to be applicable?
Barros and Alves, 2004
The inputs selected for this research are according to their:
relevancy and availability
The goal of Efficiency analysis of production activities is to:
evaluate the efficiency of a DMU (i.e., decision-making unit, which is typically a business unit, office, or branch of a private or public sector company) by comparing its input-output performance to that of other DMUs operating in a similar technological environment (typically other business units, offices, or branches of the same company).