Back Issues 11-20

THEORETICAL APPLICATION AND PROOF FOR TWO-STEP INTERVAL EFFICIENCY EVALUATION METHOD

Chiao-Pin Bao

I-Shou University, Taiwan (ROC)

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Nai-Chieh Wei

I-Shou University, Taiwan (ROC)

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Tsung-Ji Lin*

I-Shou University, Taiwan (ROC), 

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Shu-Chuan Chen

I-Shou University, Taiwan (ROC)

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Abstract

Regarding the "probability efficiency" in Data Envelopment Analysis (DEA), interval efficiency evaluation methods can be categorized into four types; the application of the former three types is undoubted, but no theoretical evidence has been provided to prove the fourth method. This research aims to solidify the theoretical basis for this method and utilize academic evidence to prove its rationality. After dividing the mean values of cross efficiency for decision-making units (DMU) by standard deviation, this research uses the obtained values as baseline. Besides, the research employs a theorem as theoretical proof by combining "probability formula" and cross efficiency to evaluate the weighted variables of each DMU pair. Afterwards, the highest score serves as the upper limit and the lowest as the lower limit of efficiency to illustrate the superiority of each DMU's efficiency. This can show the internal efficiency variables, so we can determine the "comprehensive efficiency" of each DMU.

Keywords: data envelopment analysis, interval efficiency evaluation, cross efficiency, CCR efficiency evaluation

Attachments:

1035 Final.pdf

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421 kB