Data Envelopment Analysis (Productivity)
Data envelopment analysis (DEA) is a nonparametric, linear-programming technique for measuring the relative productive efficiency of comparable units — firms, plants, hospitals, schools, bank branches — that convert multiple inputs into multiple outputs. Introduced by Charnes, Cooper, and Rhodes in 1978 and rooted in Farrell's 1957 work on efficiency measurement, it constructs a best-practice frontier that envelops the observed data and scores each unit by its distance to that frontier, requiring no assumed functional form for the production technology.
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- Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research, 2(6), 429–444. · DOI 10.1016/0377-2217(78)90138-8
- Farrell, M. J. (1957). The measurement of productive efficiency. Journal of the Royal Statistical Society. Series A (General), 120(3), 253–290. · DOI 10.2307/2343100
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