Introducing microeconomic foundation in DEA: the average-based approach

• Type: Another Publication in an International Scientific Journal
• Date: 2020

Authors

Ribeiro, VM (Author) FEP; Varum, C (Author) Other; Daniel, AD (Author) Other

Journal

Title: Spatial Economic Analysis

Vol. 15

Pages: 145-164

ISSN: 1742-1772

Publisher: Taylor & Francis

Indexing

ISI Web of Knowledge - 1 Citation

Scopus - 1 Citation

Other information

Authenticus ID: P-00R-GVW

DOI: 10.1080/17421772.2020.1701701

Abstract (EN): Although recent developments focused on the multi-stage and multilevel data envelopment analysis (DEA) exhibit a high degree of mathematical sophistication, they are also characterized by the absence of a microeconomic foundation. This study proposes a novel approach called average-based DEA, which is conceived to overcome such a concern through the application of the Spence distortion principle to the hierarchy of a system. Theoretical and empirical results demonstrate that the proposed methodology reduces the distortion of efficiency scores observed in alternative multilevel extensions.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 20