Terminal units in DEA: Definition and determination

Arbeitspapier

Applications of the DEA models show that inadequate results may arise in some cases, two of these inadequacies being: a) too many efficient units may appear in some DEA models; b) a DEA model may show an inefficient unit from the point of view of experts as an efficient one. The purpose of this paper is to identify units that may unduly become efficient. The concept of a terminal unit is introduced for such units. A method for improving the adequacy of DEA models based on terminal units is suggested, and an example shown based on a real-life data set for Russian banks.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Memorandum ; No. 2011,04

Classification and Topics

• Classification: Wirtschaft ; Operations Research; Statistical Decision Theory ; Optimization Techniques; Programming Models; Dynamic Analysis ; Input-Output Models ; Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
• Subject: Terminal units ; DEA ; Efficiency ; Weight restrictions ; Domination cones

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Krivonozhko, Vladimir ; Førsund, Finn R. ; Lychev, Andrey V.
• Event: Veröffentlichung
• (who): University of Oslo, Department of Economics
• (where): Oslo
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/47267
• Last update: 10.03.2025, 11:44 AM CET