Value Efficiency Analysis in different technologies

Javad Gerami

Abstract


One approximation to apply superiority and preference information in Data Envelopment Analysis (DEA) is to use value efficiency approach. The purpose of calculating value efficiency approach is to calculate increase in outputs and reduce in inputs to achieve value function frontier that passes most preferred solution (MPS) point. Note that value function is an unknown function and we can use linear approximation for the approximation of this function and the new frontier will replace the real frontier. In this paper, directional distance function is used to calculate value efficiency. Thus, different values of value efficiency are achieved by selecting various directions. In the following, the above models are used to assess the value efficiency of bank branches by applying the comments of managers and we will see that without the application of weight restrictions, we can apply the comments of managers for a proper assessment.

Keywords


Data envelopment analysis; Value efficiency; Efficiency analysis; Directional Distance Function

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.