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Random effects logistic regression model for data envelopment analysis with correlated decision making units

  • Theoretical Paper
  • Published:
Journal of the Operational Research Society

Abstract

This study attempts to exploit information from environmental variables together with data envelopment analysis (DEA) efficiency scores for efficiency predictions of groups with more limited information. Based on DEA efficiency scores, decision-making units (DMUs) are sorted into two sets containing efficient and inefficient units, respectively. Then they are reshuffled into homogeneous groups with respect to environmental factors. We assume that the efficiency of DMUs in such a homogeneous group would be correlated. However, efficiency of different groups would vary. A beta binomial logistic model is proposed to fit such phenomena and is applied to predict the performance of a new group of commercialization projects for given environmental characteristics.

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Acknowledgements

This work was supported by the Korea Research Foundation Grant (KRF-2003-041-D00612).

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Authors and Affiliations

  1. Yonsei University, Seoul, Republic of Korea

    S Y Sohn & H Choi

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  1. S Y Sohn
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  2. H Choi
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Correspondence to S Y Sohn.

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Sohn, S., Choi, H. Random effects logistic regression model for data envelopment analysis with correlated decision making units. J Oper Res Soc 57, 552–560 (2006). https://doi.org/10.1057/palgrave.jors.2602026

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  • DOI: https://doi.org/10.1057/palgrave.jors.2602026

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