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An extended aggregated ratio analysis in DEA

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Abstract

Data Envelopment Analysis (DEA) and Ratio Analysis (RA) are two widely used methods for measuring units’ productivity and any other criteria that could be assessed based on the available input and output variables. A number of researchers have studied DEA and RA and noted the positive and negative differences between them. Aggregated ratio analysis (ARA) model, which provide an important linkage between DEA and RA theory, is equivalent to the CCR DEA model, and this equivalence property offers a great deal of opportunities for DEA to be interpreted and applied in different ways. This paper extends the results of ARA model and proposes an extended aggregated ratio analysis (EARA) model, similar as the development from CCR model to BCC model in DEA context. The proposed model can offer an insight into the characteristic of returns to scale, playing the corresponding role as BCC model does. The numerical example is revisited in the paper and the results are compared.

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Authors and Affiliations

  1. School of Statistics and Applied Mathematics, Anhui University of Finance & Economics, Bengbu, 233030, China

    Malin Song

  2. School of Management, University of Science & Technology of China, Hefei, 230026, China

    Jie Wu

  3. School of Statistics and Applied Mathematics, Anhui University of Finance & Economics, Bengbu, 233030, China

    Yumei Wang

Authors
  1. Malin Song
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  2. Jie Wu
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  3. Yumei Wang
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Corresponding author

Correspondence to Malin Song.

Additional information

This work is financial support by National Natural Science Foundation of P.R.C. (70901069), Ministry of Education Foundation of Humanities and Social Sciences of P.R.C. (10YJC630208), Key Foundation of Natural Science for Colleges and Universities in Anhui, China (KJ2011A001) and Social Science Foundation of Anhui, China (AHSK07-08D25, AHSKF09-10D116, AHSK09-10D14).

Malin Song is an Associate Professor in School of Statistics and Applied Mathematics, Anhui University of Finance and Economics. He is a Standing Director of Institute of Industrial Economics, Anhui, China, and Research Fellow in Economic Development Research Center, Anhui University of Finance and Economics. His major field of study includes Environmental Economics and System Modeling and Analysis.

Jie Wu is a Lecturer in School of Management, University of Science & Technology of China. His major field of study includes Management Decision and System Modeling and Analysis.

Yumei Wang is a Professor in School of Statistics and Applied Mathematics, Anhui University of Finance and Economics. Her major field of study includes System Modeling and Analysis.

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Song, M., Wu, J. & Wang, Y. An extended aggregated ratio analysis in DEA. J. Syst. Sci. Syst. Eng. 20, 249–256 (2011). https://doi.org/10.1007/s11518-011-5162-1

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  • DOI: https://doi.org/10.1007/s11518-011-5162-1

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