Publications and Research

Document Type

Article

Publication Date

Summer 7-8-2013

Abstract

The paper introduces stochastic DEA with a Perfect Object (SDEA PO). The Perfect Object (PO) is a virtual Decision Making Unit (DMU) that has the smallest inputs and greatest outputs. Including the PO in a collection of actual objects yields an explicit formula of the efficiency index. Given the distributions of DEA inputs and outputs, this formula allows us to derive the probability distribution of the efficiency score, to find its mathematical expectation, and to deliver common (group–related) and partial (object-related) efficiency components. We apply this approach to a prospective analysis of environmental efficiency of the major national and regional economies.

Comments

This article was originally published in the American Journal of Applied Mathematics and Statistics, available at http://pubs.sciepub.com/ajams/1/4/2.

 
 

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