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Efficiency and cross-efficiency in DEA: derivations, meanings and uses

Doyle, John R. and Green, R. 1994. Efficiency and cross-efficiency in DEA: derivations, meanings and uses. Journal of the Operational Research Society 45 (5) , pp. 567-578. 10.1057/jors.1994.84

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In this paper we examine a neglected aspect of Data Envelopment Analysis: cross-efficiency. We develop the concept of cross-efficiency in a number of new directions. We ground an intuitive understanding of cross-efficiency in the concept of peer-appraisal, as opposed to self-appraisal implied by simple efficiency, and discuss the relative merits of each. We also present mathematical formulations of, and intuitive meanings for three possible implementations of aggressive and benevolent cross-efficiency. We have implemented two of these formulations in computer programs; their performance is compared empirically on a real data set. Finally, we suggest practical uses for cross-efficiency, illustrated with reference to the same data set.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HD Industries. Land use. Labor
Q Science > QA Mathematics > QA75 Electronic computers. Computer science
Uncontrolled Keywords: data envelopment analysis, linear programming, comparative efficiency assessment, cross-efficiency
Publisher: Palgrave Macmillan
ISSN: 0160-5682
Last Modified: 05 Nov 2019 03:32

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