A NEW RESTRICTED MODEL USING CORRELATION COEFFICIENTS AS AN ALTERNATIVE TO CROSS-EFFICIENCY EVALUATION IN DATA ENVELOPMENT ANALYSIS


MECİT E. D. , ALP İ.

HACETTEPE JOURNAL OF MATHEMATICS AND STATISTICS, vol.41, no.2, pp.321-335, 2012 (Journal Indexed in SCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 41 Issue: 2
  • Publication Date: 2012
  • Title of Journal : HACETTEPE JOURNAL OF MATHEMATICS AND STATISTICS
  • Page Numbers: pp.321-335

Abstract

In this paper, a new Data Envelopment Analysis (DEA) model, which is restricted using correlation coefficients (the CCRCOR), was compared with the cross-efficiency evaluation model (the CEM) and some other models. We used two hypothetical data sets, which were generated by E. Thanassoulis (A comparison of regression analysis and data envelopment analysis as alternative methods for performance assessments, J. Operational Research Society 44, 1129-1144, 1993) (with one input) and K. F. Lam (In the determination of weight sets to compute cross-efficiency ratios in DEA, J. Operational Research Society 61, 134-143, 2010) (with two inputs). Until now, these data sets have been used by various researchers. The writers did not consider whether or not these data sets were appropriate to the analysis. So, we recommend the CCRCOR model in our paper. The CCRCOR model allows one to add weight restrictions to the OCR model, which are obtained using correlations between input and output variables.