Stability and integrity tests in data envelopment analysis |
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Authors: | Necmi K Avkiran [Author Vitae] |
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Institution: | The University of Queensland, UQ Business School, 11 Salisbury Road, Ipswich, Qld 4305, Australia |
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Abstract: | Studies that apply data envelopment analysis often neglect testing the stability of the efficient frontier to data perturbations, and, to a lesser extent, the ability of efficiency scores to correctly discriminate between units on performance (integrity). Our primary motivation is to demonstrate methods that can help reduce the number of managerial decisions based on results that may be unreliable. To this end, we illustrate multiple tests of stability and integrity in an environment of fully units-invariant efficiency measurement. This application of tests of stability and integrity using a slacks-based measure of efficiency is the first in a peer-reviewed journal. |
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Keywords: | Stability Integrity Productivity Efficient frontier DEA |
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