Management Science · 1995 · 331 citations · 18 references
BusinessBusiness EconomicsEconomicsDecision AnalysisOptimizationStochastic ModelingEfficiency AnalysisProductivity AnalysisProductivity MeasurementStochastic Multi-criteria Decision MakingTechnical EfficiencyCost EfficiencyData Envelopment AnalysisDecision-making Unit AnalysisEconomic Efficiency AnalysisEfficiency DecompositionEfficiency EvaluationEfficiency ScoresStatistical Efficiency
The study develops a chance‑constrained programming model for efficiency evaluation. The model employs a piecewise‑linear DEA framework that envelopes confidence regions of stochastic MIMO data, decomposes total variation per DMU, and varies probability levels to assess efficiency sensitivity to noise. The method is applied to assess research efficiency of Danish university economics departments.
A model for efficiency evaluation based upon the theory of chance constrained programming is developed. The model uses a piecewise linear envelopment of confidence regions for observed stochastic multiple-input multiple-output combinations in the Data Envelopment Analysis (DEA) tradition. The model allows for an exogenous decomposition of the total variation in data for each Decision Making Unit (DMU). By varying certain probability levels the model can provide estimates of the sensitivity of efficiency scores regarding an unknown amount of noise in date. An application of the method in an evaluation of the research activities in economic departments at Danish Universities is presented.
18