Co-Plot: A Useful Tool to Detect Outliers in DEA

27 Pages Posted: 6 Feb 2012 Last revised: 15 Feb 2012

See all articles by Bernhard Mahlberg

Bernhard Mahlberg

Institute for Industrial Research (IWI); Vienna University of Economics and Business - Institute for Production Management

Adi Raveh

affiliation not provided to SSRN

Date Written: February 4, 2012

Abstract

The main goal of this research is to compare and contrast two methodologies that exist within the multi-criteria decision making field. After presenting Data Envelopment Analysis (DEA) and the Multi-Dimensional Scaling approach (Co-plot), the two techniques are evaluated and compared against data on Program Follow Through (PFT) reported by Charnes et al. (1981). It would seem that cross-fertilization of these two methodologies sheds additional light on the definition of DEA efficiency and grouping in Co-plot, it may also be useful to apply both approaches in the future. Comparison shows that Co-plot may be useful prior to a DEA in order to identify outliers that require additional scrutiny. Furthermore, there is a clear connection between DEA efficient units and the results of a Co-plot analysis using variable ratios; consequently Co-plot could be useful as a graphical tool helping to interpret the results of a DEA.

Keywords: Data Envelopment Analysis, Multi-Dimensional Scaling, Co-plot, outliers, efficiency

JEL Classification: C02, C61

Suggested Citation

Mahlberg, Bernhard and Raveh, Adi, Co-Plot: A Useful Tool to Detect Outliers in DEA (February 4, 2012). Available at SSRN: https://ssrn.com/abstract=1999370 or http://dx.doi.org/10.2139/ssrn.1999370

Bernhard Mahlberg (Contact Author)

Institute for Industrial Research (IWI) ( email )

Mittersteig 10/4
Vienna, 1050
Austria
+43 1 513 44 11 0 (Phone)
+43 1 513 44 11 2099 (Fax)

HOME PAGE: http://www.iwi.ac.at/

Vienna University of Economics and Business - Institute for Production Management ( email )

Welthandelsplatz 1
Building D2, Entrance C, 3rd floor
Vienna, 1020
Austria
+43 1 313 36 - 5615 (Phone)

HOME PAGE: http://https://www.wu.ac.at/en/prodmanengl/

Adi Raveh

affiliation not provided to SSRN ( email )

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