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DEA Cross Efficiency

Chapter
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 221)

Abstract

Data envelopment analysis (DEA) provides a relative efficiency measure for peer decision making units (DMUs) with multiple inputs and outputs. While DEA has been proven an effective approach in identifying the best practice frontiers, its flexibility in weighting multiple inputs and outputs and its nature of self-evaluation have been criticized. The cross efficiency method was developed as a DEA extension to rank DMUs with the main idea being to use DEA to do peer evaluation, rather than in pure self-evaluation mode. However, cross efficiency scores obtained from the original DEA model are generally not unique, and depend on which of the alternate optimal solutions to the DEA linear programs is used. The current chapter discusses various cross efficiency approaches in dealing with non-unique solutions from DEA

Keywords

Data Envelopment Analysis (DEA) Cross efficiency Multiplicative Cobb-Douglas 

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Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  1. 1.Schulich School of BusinessYork UniversityTorontoCanada
  2. 2.School of businessWorcester Polytechnic InstituteWorcesterUSA

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