DEA: Past Accomplishments and Future Prospects

45 Pages Posted: 17 Jun 2005

See all articles by William W. Cooper

William W. Cooper

University of Texas at Austin - McCombs School of Business

Lawrence M. Seiford

University of Michigan at Ann Arbor - Department of Industrial and Operations Engineering

Kaoru Tone

National Graduate Institute for Policy Studies (GRIPS)

Joe Zhu

Worcester Polytechnic Institute (WPI)

Date Written: June 2005

Abstract

This paper covers some of the past accomplishments of DEA and its future prospects. It starts with the engineering-science definitions of efficiency and uses the duality theory of linear programming to show how, in DEA, they can be related to the Pareto-Koopmens definitions used in welfare economics. Some of the models that have now been developed for implementing these concepts are then described and properties of these models are examined for weaknesses and strengths along with different measures of distance that may be used to determine their optimal values. Relations between the models are also demonstrated en route to delineating paths for future developments. These include extensions to different objectives such as satisfactory vs. full (or strong) efficiency. They also include extensions from efficiency to effectiveness evaluations of performances as well as extensions to evaluate social-economic performances of countries and other entities where inputs and outputs give way to other categories in which increases and decreases are located in the numerator or denominator of the ratio (=engineering-science) definition of efficiency in a manner analogous to the way output (in the numerator) and input (in the denominator) are usually positioned in the fractional programming form of DEA. Beginnings in each of these extensions are cited and the role of applications in bringing further possibilities to the fore is highlighted.

Keywords: Efficiency, effectiveness, social indicators, engineering science, welfare economics, distance measures

Suggested Citation

Cooper, William W. and Seiford, Lawrence M. and Tone, Kaoru and Zhu, Joe, DEA: Past Accomplishments and Future Prospects (June 2005). McCombs Working Paper No. IROM-01-05. Available at SSRN: https://ssrn.com/abstract=744128 or http://dx.doi.org/10.2139/ssrn.744128

William W. Cooper (Contact Author)

University of Texas at Austin - McCombs School of Business ( email )

Austin, TX 78712
United States

Lawrence M. Seiford

University of Michigan at Ann Arbor - Department of Industrial and Operations Engineering ( email )

1205 Beal Avenue
Ann Arbor, MI 48109
United States

Kaoru Tone

National Graduate Institute for Policy Studies (GRIPS) ( email )

7-22-1 Roppongi, Minato-Ku
Tokyo 106-8677, Tokyo 106-8677
Japan

Joe Zhu

Worcester Polytechnic Institute (WPI) ( email )

100 Institute Road
Worcester, MA 01609
United States

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