Despotis, Dimitrs and Koronakos, Gregory and Sotiros, Dimitris (2012): Additive decomposition in twostage DEA: An alternative approach.
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Abstract
Typically, a twostage production process assumes that the first stage transforms external inputs to a number of intermediate measures, which then are used as inputs to the second stage that produces the final outputs. The three fundamental approaches to efficiency assessment in the context of DEA (twostage DEA) are the simple (or independent), the multiplicative and the additive. The simple approach does not assume any relationship between the two stages and estimates the overall efficiency and the individual efficiencies for the two stages independently with typical DEA models. The other two approaches assume a series relationship between the two stages and differ in the way they conceptualize the decomposition of the overall efficiency to the efficiencies of the individual stages. This paper presents an alternative approach to additive efficiency decomposition in twostage DEA. We show that when using the intermediate measures as pivot, it is possible to aggregate the efficiency assessment models of the two individual stages in a single linear program. We test our models with data sets taken from previous studies and we compare the results with those reported in the literature.
Item Type:  MPRA Paper 

Original Title:  Additive decomposition in twostage DEA: An alternative approach 
Language:  English 
Keywords:  Data envelopment analysis (DEA); Efficiency; Decomposition; Twostage DEA 
Subjects:  C  Mathematical and Quantitative Methods > C6  Mathematical Methods; Programming Models; Mathematical and Simulation Modeling 
Item ID:  41724 
Depositing User:  Dimitris Despotis 
Date Deposited:  05. Oct 2012 15:59 
Last Modified:  13. Feb 2013 04:40 
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URI:  http://mpra.ub.unimuenchen.de/id/eprint/41724 
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