Methodological Advances in DEA: A survey and an application for the Dutch electricity sector |
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| Authors: | Laurens Cherchye Thierry Post |
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| Affiliation: | Fund for Scientific Research –Flanders (FWO –Vlaanderen;Belgium), Catholic University of Leuven, Campus Kortrijk and Center for Economic Studies, E. Sabbelaan 53, B-8500 Kortrijk, Belgium.; Erasmus University Rotterdam, P. O. Box 1738, 3000 DR Rotterdam, The Netherlands |
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| Abstract: | We survey the methodological advances in DEA over the last 25 years and discuss the necessary conditions for a sound empirical application. We hope this survey will contribute to the further dissemination of DEA, the knowledge of its relative strengths and weaknesses, and the tools currently available for exploiting its full potential. Our main points are illustrated by the case of the DEA study used by the regulatory office of the Dutch electricity sector (Dienst Toezicht Elektriciteitswet; Dte) for setting price caps. |
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| Keywords: | Data Envelopment Analysis empirical production analysis Dutch electricity sector |
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