This chapter describes network DEA models, where a network consists of sub-technologies. A DEA model typically describes a technology to a level of abstraction necessary for the analyst’s purpose, but leaves out a description of the sub-technologies that make up the internal functions of the technology. These sub-technologies are usually treated as a “black box”, i.e., there is no information about what happens inside them. The specification of the sub-technologies enables the explicit examination of input allocation and intermediate products that together form the production process. The combination of sub-technologies into networks provides a method of analyzing problems that the traditional DEA models cannot address. We apply network DEA methods to three examples; a static production technology with intermediate products, a dynamic production technology, and technology adoption (or embodied technological change). The data and GAMS code for two examples of network DEA models are listed in appendices.
KeywordsData Envelopment Analysis (DEA) Network Intermediate Products Dynamic Production Technology Adoption
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