Weight assurance region in two-stage additive efficiency decomposition DEA model: an application to school data

George Halkos (Lead / Corresponding author), Nickolaos Tzeremes, Stavros Kourtzidis

    Research output: Contribution to journalArticle

    16 Citations (Scopus)

    Abstract

    In this paper we use the additive efficiency decomposition approach in two-stage data envelopment analysis. Initially, we evaluate the variable returns to scale version and face a structural difficulty of the model. In an extreme case, weights ξ1 or ξ2, which represent the relative importance of the performance of the first and second stages, respectively, become zero for a number of decision making units (DMUs). As a result, individual stage efficiencies for these DMUs are undefined. We propose a weight assurance region model to restrict ξ1 and ξ2, which ensures that both weights are always positive, and therefore individual stage efficiency is always defined. Furthermore, the proposed model is appropriate for policy making in the presence of a priori information about the relative importance of each stage in the overall process. We employ the new model to evaluate the efficiency of secondary education in 65 countries and construct an overall ‘school efficiency’ index. In the first stage we measure the ‘learning environment efficiency’ and in the second we measure the ‘student’s performance efficiency’.
    Original languageEnglish
    Pages (from-to) 696–704
    Number of pages9
    JournalJournal of the Operational Research Society
    Volume66
    Issue number4
    Early online date30 Apr 2014
    DOIs
    Publication statusPublished - Apr 2015

      Fingerprint

    Keywords

    • additive two-stage DEA
    • assurance regions
    • school efficiency

    Cite this