Data Envelopment Analysis - Basic Models and Their
Data Envelopment Analysis - Basic Models and Their
Data Envelopment Analysis - Basic Models and Their
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DOI: 10.2478/v10051-009-0001-6
1University of Belgrade, Faculty of Organizational Sciences, Jove Ili}a 154, 11000 Belgrade, Serbia
martic.milan@fon.bg.ac.yu
2University of Maribor, Faculty of Organizational Sciences, Kidri~eva cesta 55a, 4000 Kranj, Slovenia
alenka.bag[email protected]
Data Envelopment Analysis (DEA) is a decision making tool based on linear programming for measuring the relative efficiency
of a set of comparable units. Besides the identification of relatively efficient and inefficient units, DEA identifies the sources
and level of inefficiency for each of the inputs and outputs. This paper is a survey of the basic DEA models. A comparison of
DEA models is given. The effect of model orientation (input or output) on the efficiency frontier and the effect of the convexity
requirements on returns to scale are examined. The paper also explains how DEA models can be used to assess efficiency.
1 Introduction other DMUs with the simple restriction that all DMUs lay
on or below the extreme frontier. DEA is a non-parame
One of the most important principles in any business is tric method as it does not require any assumption about
the principle of efficiency; where the best possible econo functional form (e.g. a regression equation, a production
mic effects (outputs) are attained with as little economic function, etc.). It is a methodology directed at the frontier
sacrifices as possible (inputs). Efficiency can be defined as rather than at central tendencies. While statistical proce
the demand that the desired goals are achieved with the dures are based on central tendencies, DEA is a process
minimum use of the available resources. In order to assess of extremities. DEA analyzes each DMU separately and
the relative efficiency of a business unit, it is necessary calculates a maximum performance measure for each
to consider the conditions and operation results of other unit. DEA has become one of the most popular fields in
units of the same kind and to determine the real standing operations research, with applications involving a wide
of the results of such a comparison. range of context (Thanassoulis, 2001).
In a simple case where units have a single output and DEA is one of the most popular fields in operations
a single input, efficiency is defined as their ratio. However, research (Emrouznejad et al., to appear; Seiford, 1997).
typical organizational units have multiple and incommen Since the seminal work of Charnes, Cooper and Rhodes
surate inputs and outputs. Data Envelopment Analysis (1978) and since 1995, there was literally “exponential”
was introduced by Charnes, Cooper and Rhodes (1978) to growth in the number of publications. Between 1995
assess the relative efficiency of organizational units with and 2003, the number of relevant publications stabilized
multiple inputs to produce multiple outputs. The authors at about 225 per year. However, in the last four years
of DEA defined the efficiency of the unit under evalua (2004-2007), the number increased to approximately 360
tion as the ratio of the sum of its weight outputs to the per year. Journals such as the European Journal of Opera
sum of its weight inputs. tional Research, Journal of Productivity Analysis, and the
Recently, the Data Envelopment Analysis method Journal of the Operational Research Society are the most
is becoming popular for assessing the relative efficiency utilized.
of business entities. DEA is a technique of mathematical The papers presented show ample possibilities for
programming that enables the determination of a unit’s using the DEA for the evaluation of the performance of
efficiency based on its inputs and outputs, and compares bank branches, schools, university departments, farming
it to other units involved in the analysis. The DEA can be estates, hospitals and social institutions, military services,
described as data-oriented as it effects performance eva entire economic systems (regions) and other things. DEA
luations and other inferences directly from the observed is a methodology of several different interactive approac
data and with minimal assumptions. The efficiency of a hes and models used for the assessment of the relative effi
Decision Making Unit (DMU) is measured relative to all ciency of DMU and for the assessment of the efficiency
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Organizacija, Volume 42 Research papers Number 2, March-April 2009
frontier. It supplies important information for managing importance of each input and output and are determined
the operations of efficient and inefficient units. This paper in the model so that each DMU is efficient as much as pos
is a survey of the basic DEA models. Some ways in which sible. Given that the condition (2) is true for every DMU,
these models can be used are also given. it means that each of them lies on the efficiency frontier
or beyond it. If Max hk = hk* = 1, it means that efficiency
is being achieved, so we can tell that DMUk is efficient.
2 DEA Models Efficiency is not achieved for hk* < 1 and DMUk is not
efficient in that case. DMUk is to be considered relatively
DEA methodology, originally proposed in (Charnes et al., inefficient, if it is possible to expand any of its outputs
1978), is used to assess the relative efficiency of a number without reducing any of its inputs, and without reducing
of entities using a common set of incommensurate inputs any other output (output orientation), or if it is possible to
to generate a common set of incommensurate outputs. reduce any of its inputs without reducing any output and
The original motivation for DEA was to compare the pro without expanding some other inputs (input orientation).
ductive efficiency of similar organizations, referred to as Problem (1) - (4) is nonlinear, nonconvex, with a
DMUs. The problem of assessing efficiency is formulated linear and fractional objective function and linear and
as a task of fractional programming, but the application fractional constraints. Using a simple transformation deve
procedure for DEA consists of solving linear program loped by Charnes and Cooper (1962), the above CCR
ming (LP) tasks for each of the units under evaluation. ratio model can be reduced to the LP form (the Primal
Let xij - denote the observed magnitude of i - type CCR model) so that the LP methods can be applied. In
input for entity j ( xij > 0, i = 1, 2, ..., m, j = 1, 2, ..., n) and this model, the denominator has been set equal to 1 and
yrj - the observed magnitude of r-type output for entity j the numerator is being maximized. The input oriented
(yrj > 0, r = 1, 2, ..., s, j = 1, 2, ..., n). Then, the Charnes-Coo CCR primal model is:
per-Rhodes (CCR) model is formulated in the following
form for the selected entity k: MODEL (M2)
∑u r
y rk
Maximize hk = r =1
m
(1)
(6)
∑v
i =1
i
x ik
(7)
Subject to
s
(8)
∑u r
y rj
r =1 ≤1, j =1,2,..., j ,..., n (2) (9)
m k
∑v x i ij The mathematical model given above is linear and
i=1
can be solved using any of the familiar programs packages
ur ≥ε , r =1,2,..., s (3) for LP. However, in practice, it is often solved dual task for
problem (5) - (9), which is:
v i ≥ε , i =1,2,..., m (4)
MODEL (M3)
Where:
n vi is the weights to be determined for input i; (10)
n m is the number of inputs;
n ur is the weights to be determined for output r;
n s is the number of outputs;
n h is the relative efficiency of DMUk; (11)
k
n n is the number of entities;
n ε is a small positive value.
The relative efficiency hk, of one decision-making (12)
unit k, is defined as a ratio of the weighted sums of their
outputs (virtual output) and the weighted sums of their (13)
inputs (virtual input). As for the decision-making unit k,
for which a maximum in objective function (1) is sought, The basic idea behind DEA is best conveyed in the
the condition (2) is true, meaning that it is obviously 0 < dual CCR model (M3), which is easy to solve because of
hk ≤ 1, for each DMUk. The weights vi and ur show the its calculating size. The dual model for a given unit using
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Organizacija, Volume 42 Research papers Number 2, March-April 2009
input and output values of other units tries to construct a bination of DMUs, which are in the set (those that have
hypothetical composite unit out of the existing units. If it positive value for λ in the optimal solution). The DMU
is possible, the given unit is inefficient, otherwise it is effi operates under variable returns to scale if it is suspected
cient and lies at the efficiency frontier. The efficiency fron that an increase in inputs does not result in a proportional
tier is a set of segments interconnecting all the efficient change in the outputs. The convexity constraint ensures
DMUs and it acts as an envelope for inefficient units. An that the composite unit is of similar scale size as the unit
inefficient unit can be enveloped below (input-oriented being measured. The BCC model yields a measure of
model) or above (output-oriented model). pure technical efficiency that ignores the impact of the
Because the problems described by models (M2) and scale size by only comparing a DMU to a unit of similar
(M3) are associated and because of the duality theorem scale. Often, small units are qualitatively different from
in linear programming, DMUk is efficient if and only large units and a comparison between the two may distort
if conditions for optimal solution (λ*, s+*, s-*, Zk*) are measurements of comparative efficiency. The measured
accomplished for the problem (10)-(13): efficiency is always at least equal to the one given by the
CCR model. The envelopment surface obtained from the
Zk* = 1 (14) BCC model results in a convex hull.
s+* = s-* = 0 in all alternate optima (15) The DEA model can be input or output oriented.
The input oriented model contracts the inputs as far as
Using the optimal solution (λ*, s+*, s-*, Zk*) of the possible while controlling the outputs. In an input orien
problem (10) - (13), it can be determined:
ted model, an inefficient unit is made efficient through
the proportional reduction of its inputs, while its outputs
X’’k = Zk*Xk - s-* (16)
proportions are held constant. The output oriented model
Y’’k = Yk + s+* (17) expands the outputs as far as possible while controlling
the inputs. In an output oriented model, an inefficient unit
It can be shown that after CCR projection (16), (17),
DMUk with altered inputs X’’k and outputs Y’’k becomes is made efficient through the proportional increase of its
efficient. The difference ∆Xk = Xk - X''k and ∆Yk = Y''k outputs, while the inputs' proportions remain unchanged.
- Yk respectively shows the estimated amount of input An inefficient DMU can be made more efficient by pro
and output inefficiency. Thus it can be seen for inefficient jection onto the frontier. Model orientation determines
DMUk, how to change its inputs and outputs, so it would the direction of the projection for inefficient DMUs. In an
become efficient. We should emphasize that, for each input orientation, one improves efficiency through the pro
DMUj (j = 1, 2, ..., n) taken as DMUk, an appropriate portional reduction of inputs, whereas an output orienta
linear programming problem is solved (10) - (13). Hence, tion requires proportional augmentation of the outputs.
we should solve n linear programming tasks with the form The input and output measurements are always the
(10) - (13), with (s+m+1) variables and (s+m) constraints same in the CCR model, but frequently differ in the BCC
per task. model. Thus, if we are using the CCR model, we can solve
The CCR models (dual and primal) with input orien one model and give either interpretation. If we solve the
tation are still the most widely known and used DEA BCC input model, we can only give an input interpreta
models despite the numerous modified models that have tion and we must solve the BCC output model for an out
appeared. The CCR models assume constant returns to put interpretation. Another difference between the BCC
scale. DMU operates under constant returns to scale if an and CCR models lies in the scalar transformations of all
increase in the inputs results in a proportionate increase data for a given DMU. The efficiency measure in the CCR
in the output levels. These models calculate an overall model is unchanged by scalar transformations, since the
efficiency in which both its pure technical efficiency and efficiency ratio of the scaled DMU is unchanged. On the
its scale efficiency are aggregated into a single value. The other hand, the scalar transformations of a given DMU
envelopment surface obtained from the CCR model has change the scalar size and could easily affect the efficiency
the shape of a convex cone. The efficient DMUs would lie measurements from the BCC model.
on top of the structure, while the inefficient ones would Numerous extensions of the basic DEA models are
be covered under the cone. In a single input and output presented in the literature (Charnes et al., 1995; Cooper et
case, the efficiency frontier is reduced to a straight line. al., 2005; Thanassoulis, 2001). Some of the extensions are:
The CCR model yields the same efficiencies regardless of n constraints are placed on the weights for particular
whether it is input- or output-oriented. inputs and outputs (Thanassoulis, 2001),
The most important extension of the original CCR n constraints are placed on the amount of particular vir
models is given in Banker et al. (1984) where an additional tual inputs and outputs (Thanassoulis, 2001),
constraint was introduced in model (M3): n inputs and outputs that cannot be controlled are
n brought into analysis (Banker and Morey, 1986),
∑λ j
=1 (18) n categorical variables are brought into the model (Ban
j =1 ker and Morey, 1986),
This constraint enables variable returns to scale and n models for ranking relatively efficient DMUs are
provides that the reference set is formed as a convex com developed (Andersen and Petersen, 1993).
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Organizacija, Volume 42 Research papers Number 2, March-April 2009
3 DEA Model Utilization become relatively efficient. For each inefficient DMU
(one that lies below the frontier), DEA identifies the sour
In the first part of this section, we discuss how DEA ces and level of inefficiency for each input and output. The
models can be used to assess DMUs. A key stage in a level of inefficiency is determined by comparison with a
DEA assessment is the identification of the input/out single referent DMU or a convex combination of other
put variables pertaining to the units being assessed, see relevant DMUs located on the efficient frontier that utili
(Boussofiane et al., 1991). Since DEA is used to evaluate ze the same level of inputs and produce the same or higher
performances by directly considering input and output level of outputs. In the previous section, we have seen that
data, the results will depend on the input/output choice we can reach the level of inefficiency using the optimal
for the analysis and the number and homogeneity of the solution of model (M3) and relations (16) and (17). We can
DMUs to be evaluated. In this stage it is important to arrive at similar information through sensitivity analysis of
consult the people working in the units that are to be eva the optimal solution in model (M1). These results are very
luated, so major inputs and outputs can be identified pro important to managers, because they indicate the sources
perly. It is important to envelop all the important inputs of inefficiency for relatively inefficient DMUs.
in the analysis, namely all the resources used, and all the Improvement of efficiency in not only inefficient but
important outputs (the products and services produced). also the efficient units can be attained by identifying an
A large number of inputs and outputs compared to the efficient operating practice. It can usually be found in the
number of units to be evaluated may reduce the discrimi relatively efficient units. However, among the relatively
nating tendency of the method. The larger the number of efficient units, some are better than others at setting a
inputs and outputs compared to the number of units to good example. A need to distinguish the relatively effi
be evaluated, the greater the chances that the units will cient units and find a good operating practice, emerges
allocate appropriate weights to a single subset of inputs from the essence of a DEA model that allows a unit to
and outputs that will make them appear efficient. In order select the weights that will show it as having maximum
to preserve the discriminating power of the method, the efficiency. In this way, the units may appear efficient
number of the units to be evaluated should be much lar because all very small input subsets will be ignored within
ger than the number of inputs and outputs. Some authors their choice of weights. Moreover, the inputs and outputs
suggest from experience that the number of units in the assigned larger weights could be given a secondary impor
DMU should exceed the number of inputs and outputs by tance while those that are ignored could be associated
at least twice. Boussofiane et al., (1991) propose testing with the units' main functions.
the correlation between the inputs and outputs, as one To distinguish the relatively efficient DMUs, Bousso
possible way to reduce their number. If a pair of inputs fiane et al. (1991) suggested the following methods (or a
is positively correlated then one may be omitted without combination of these):
any implications on the efficiency to be rated. The same n cross efficiency matrix,
applies to outputs. The availability of data may also affect n the distribution of virtual inputs and outputs,
the choice of inputs and outputs in practice. If the data on n weight restriction,
an input or output is not available then the possibility of n the frequency by which an efficient unit appears in
using a substitute for which such data is either available or the peer groups.
can be obtained relatively easily should be checked. Basic DEA models evaluate the relative efficiency of
DEA is a methodology with several different interac DMUs but do not allow any ranking of the efficient units
tive approaches and models used for the assessment of themselves. This is the main weakness of the basic DEA
the relative efficiency of a DMU and for the assessment models. One way to rank efficient DMUs is to modify
of the efficiency frontier. It supplies important informa basic DEA models. One of these has been formulated
tion for managing the operations of both efficient and by Andersen and Petersen (1993). The basic idea is to
inefficient units. For each inefficient unit, DEA identifies compare the unit under evaluation with a linear combina
a set of relatively efficient units, thus making a peer group tion of all the other units in the sample, i.e., the observed
for the inefficient unit. The peer set for an inefficient unit DMU is excluded from the peer group. Efficient units
constitutes the units with the same optimum weights as may proportionally increase the value of the input vector
the inefficient unit, but with a relative efficiency rating of while preserving efficiency. The units obtain an efficiency
1. Such peer units are identified fairly easily by the fact score above 1. This score reflects the radial distance of
that they all have a positive value for λ in the optimum the DMU under evaluation from the production frontier,
solution to (M3) for an inefficient unit. The identification estimated with that DMU excluded from the sample. This
of peer groups should be very useful in practice. Peer approach provides an efficiency rating for efficient units
units can be used to highlight the weak aspects of the that is similar to the rating of the inefficient units above.
performance of the corresponding inefficient unit. The The second part of this section relates to two of the
input/output levels of a peer unit can also sometimes pro most important applications of DEA in Serbia. DEA is
ve useful target levels for the inefficient unit. used very successfully for the comparative analysis and
From the solution of any DEA model, we can get infor ranking of 30 regions in Serbia (Marti} and Savi}, 2001)
mation on how much a relatively inefficient unit should and in assessing the relative efficiency of 20 investment
reduce their inputs or increase their outputs in order to programs in agriculture (Marti} et al., 1996).
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Organizacija, Volume 42 Research papers Number 2, March-April 2009
In Marti} and Savi} (2001), DEA is used to estimate Nisava, the City of Belgrade and the region of Jablanica
how well regions in Serbia utilize their resources. Based utilize their resources most efficiently.
on the data for 4 inputs (Arable area, Active fixed assets, In Marti} et al. (1996), it is shown how DEA could
Consumption of electricity and Population) and 4 outputs be used to provide information concerning efficient and
(Gross domestic product, Total number of physicians, inefficient investments, and also to rank the efficient
Total number of pupils in primary school and Total num investments and indicate how to improve the efficiency
ber employed in the social sector), an output-oriented of these inefficient investments. An example illustrates
CCR DEA model is applied and it appears that 17 out the application of the approach proposed to assess the
of the 30 regions are efficient. 5 out of 7 regions from Voj relative efficiency of 20 investment programs in agricultu
vodina and 12 out of 18 regions from central Serbia are re and their ranking. The agriculture bank management
efficient, while all the regions from Kosovo and Metohia often faces a problem in measuring the efficiency of new
are inefficient. Linear Discrimination Analysis (LDA) is investments. Normally, the government is effectuating its
also applied to determine the regions. The comparison bet investments in the agricultural sector through the banking
ween the DEA and the LDA results indicated that LDA system, by nominating one or several banks to handle the
could be a useful tool for checking the DEA results. investment loans to various agricultural firms competing
The authors analyzed which changes in inputs and for funds. The banks are facing the tremendous problem
outputs inefficient regions should make in order to beco of deciding, under the constraints of limited funds and
me efficient. However, it was shown that goals obtained the wish to maximize the economic return, which firms to
using the basic CCR models and DEA models with exo select for their investment portfolio. Further, banks have
genously fixed inputs are not quite realistic. It is difficult to take care of the uniform development of all regions,
to explain that some regions have goals to reduce the size unemployment levels, ecological factors, etc.
of the population or arable area. For inefficient regions, The first step in assessing the relative efficiency of a
we experimentally determined realistic goals without set of investment programs in the agricultural sector is the
any reduction of its inputs. These goals could be achieved definition of the sets of common inputs and common out
more easily but are not in the production possibility set. puts. By reviewing the standard practice of evaluating the
In order to rank the 17 efficient regions, an output- investment programs that is used by the investment banks,
oriented version of Andersen-Petersen’s DEA model and 4 inputs (Required loan amount, Labour costs, Production
a cross efficiency matrix are used. The same or similar costs and Energy consumption) and 3 outputs (Expected
rank was obtained for 12 regions. A comparison of the value of domestic sales, Expected value of exports, Social
obtained ranks shows that the regions were ranked more justifiability and environmental acceptability) have been
realistically with the cross efficiency matrix. Neverthe investigated. The definitions and corresponding units
less, the same 8 regions are ranked in the top ten in both of measure are obvious for all inputs and the first two
approaches. The ranks obtained showed that the region of outputs listed. However, social justifiability and environ
Table 1: Input and output values for 20 investment programs competing for loans
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Organizacija, Volume 42 Research papers Number 2, March-April 2009
mental acceptability deserve further explanation. Namely, tion of each input and output to the relative efficiency of
any investment program must be socially justifiable and the subject unit in comparison with the other units. The
environmentally acceptable. The term socially justifiable optimal weights for each of the 4 inputs and 3 outputs
encompasses a number of factors such as the unemploy of the efficient units are obtained as the values of dual
ment level, regional level of development and similar. variables in (M2). Based on that, the values of the virtual
Each of the investment programs proposed has been assig inputs and outputs are computed indicating how each of
ned a social justifiability and environmental acceptability the efficient units attained their maximum efficiency. The
level using a scale from 0 to 100. Thus, an investment pro investment programs P3 and P4 have the maximum effi
gram that is fully socially justifiable and environmentally ciency due to the satisfactory value of mix y2/x4, because
acceptable has an assigned level of 100. Conversely, an the largest proportion in the virtual output comes from y2
investment program that cannot be socially and/or envi and from x4 in the virtual input. The investment program
ronmentally justified at all, has a level of 0. P5 is relatively efficient, mostly due to output y2 because
An illustrative example, based on the data for 20 of its best mix y2/x1 and the satisfactory value of mix y2/
investment programs competing for loans, is analyzed x4. A similar reasoning explains the relative efficiency of
here. Their input and output values are presented in Table the other efficient units.
1. The 20 linear programs of type (10) - (13) are formula Further, it is possible to analyze the possible propor
ted, consisting of 28 variables (m+n+s+1=28) and 7 con tional change of inputs and/or outputs needed to make
straints (m + s =7). The results were obtained using the E- an inefficient investment program into an efficient one,
DEA programming package (see Marti} & Savi}, 2001)), establishing the sensitivity of the efficiency to changes
developed at the Faculty of Organizational Sciences from in inputs and/or outputs. By using the optimal solution
Belgrade and are also presented in Table 1. of model (M2) and relation (16) and (17), set targets can
The solution obtained allows the classification of the be determined for a relatively inefficient unit to guide
investment programs into a set of efficient programs with them towards improved performance. This set of targets is
a relative efficiency of 1 and a set of inefficient programs input-oriented as the main changes are to the input levels.
with a relative efficiency less than 1. The number of rela The necessary value of the inputs and outputs that make
tively efficient investment programs is 10. For each ineffi each inefficient investment program become efficient are
cient program, the list of peer programs is given. given in Table 2.
Boussofiane et al., 1991, proposes that a simple count The results obtained, show that DEA can be success
of the frequency that an efficient unit appears in different fully used in supporting the decision making process of
peer groups could be used as an alternative indicator of investment banks. The results of the application of the
good operating practice. This count indicates the extent DEA method to assess the relative efficiency of invest
that a relatively efficient unit is a self evaluator or an eva ments in agriculture provide:
luator of other units. According to the frequency count, n a measure of the greatest relative efficiency that each
the results obtained indicate that the investment program investment program can achieve according to the fac
P10 appears in all the peer groups. A satisfactory rating is tors and fields included in the analysis,
given to the investment programs P18 and P7, appearing in n information about the most important inputs and out
5 peer groups, as well as P14 and P17 with 4 appearances. puts for each efficient investment,
One of the ways to compare relatively efficient units n the list of efficient investments that form a peer group
is the distribution of virtual inputs and outputs. Virtual for each inefficient investment and
inputs and/or outputs are obtained by multiplying their n a report on the excess of inputs and the lack of out
magnitudes with the corresponding optimal weights vi puts when the relative efficiency of an investment is
*
and ur. Thus, ur ∗ yrj is a virtual output r for unit j, where less than 1.
*
ur denotes the optimal value for ur in (M1). The magni In Marti}, Kr~evinac & Petri}, it ������������������
is also shown how
tudes of the virtual inputs and outputs show the contribu the DEA method could be used for ranking a set of effi
Table 2: The value of the inputs and outputs that make each inefficient investment program become efficient
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Organizacija, Volume 42 Research papers Number 2, March-April 2009
cient investment programs in agriculture using Andersen- Charnes, A., Cooper W. & Rhodes E. (1978). Measuring the
Petersen’s DEA model and a cross efficiency matrix. The Efficiency of Decision Making Units. European Journal of
results obtained are analyzed and compared. Operational Research, 2: 429-444.
Cooper, W., Seiford, L. & Tone, K. (2005). Introduction to Data
Envelopment Analysis and its Uses: With DEA-Solver Soft
ware and References. New York: Springer.
4 Conclusions Cooper, W., Seiford, L., Thanassoulis, E. & Zanakis, S. (2004).
DEA and its Uses in Different Countries. European Journal
DEA is a non-parameter methodology for evaluating of Operational Research, 154: 337-344.
the efficiency of non-profit DMUs. It contains solutions Emrouznejad, A., Parker, B. & Tavares, G. (to appear). Evalua
for several mutually connected linear programming mat tion of research in efficiency and productivity: A survey and
hematical models for each of the DMUs. While each of analysis of the first 30 years of scholarly literature in DEA.
Socio-Economic Planning Sciences.
these models addresses managerial and economic issues
Marti}, M., Kr~evinac S. & Petri} J. (1996). An Application of
and provides useful results, their orientations are different Data Envelopment Analysis to Assess Relative Efficiency
and, more important, they generalize and provide contact of Investments in Agriculture. Studies in Regional&Urban
with these disciplines and concepts. Thus, the models may Planning, 4: 141-152.
focus on increasing, decreasing or constant returns to sca Marti}, M. & Savi} G. (2001). An Application of DEA for Com
le as found in economics, which are here generalized into parative Analysis and Ranking of Regions in Serbia with
the form of multiple outputs. Regards to Social-Economic Development. European Jour
nal of Operational Research, 129: 344-355.
The extensive but probably incomplete bibliography Seiford, L. (1997). A Bibliography for Data Envelopment
(Emrouznejad et al., to appear) is intended to document Analysis (1978-1996). Annals of Operations Research, 73:
the diffusion and growth of DEA usage. The bibliography 393-438.
shows DEA applications in a wide range of contexts, such Thanassoulis, E. (2001). Introduction to the theory and applica
as education (public schools and universities), health care tion of data envelopment analysis: a foundation text with
(hospitals, clinics and physicians), banking, the armed for Integrated Software. Boston: Kluwer Academic Publisher.
ces (recruiting and aircraft maintenance), auditing, sports,
market research, mining, agriculture, retail outlets, organi Milan M. Marti} obtained his doctoral degree in the field
zation effectiveness, transportation (ferries and highway of Organizational Sciences from the University of Belgrade.
maintenance), public housing, index number construction, He works as an Associate professor at the University of
benchmarking, etc. Belgrade, Faculty of Organizational Sciences in the field of
Operations Research. His research interests include Data
Envelopment Analysis, Performance Measurement, Optimi
References zation Methods and Project Scheduling.
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