Journal article
Terminal units in DEA: definition and determination
Times Cited: 3


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JOURNAL OF PRODUCTIVITY ANALYSIS
Publication Details
Author list: Krivonozhko VE, Forsund FR, Lychev AV
Publisher: Springer Verlag (Germany)
Publication year: 2015
Volume number: 43
Issue number: 2
Start page: 151
End page: 164
Number of pages: 14
ISSN: 0895-562X
eISSN: 1573-0441
View additional information: View in Web of Science™

Abstract
Applications of data envelopment analysis (DEA) models show that inadequate results may arise in some cases, two of these inadequacies being: (1) too many efficient units may appear in some DEA models; (2) a DEA model may show an inefficient unit from the point of view of experts as an efficient one. The purpose of this paper is to identify units that may unduly become efficient. The concept of a terminal unit is introduced for such units. It is shown by establishing theorems how units can be identified as terminal units. An approach for improving the adequacy of DEA models based on terminal units is suggested, and an example shown based on a real-life data set for Russian banks.

Keywords
Data envelopment analysis (DEA), Domination cones, Efficiency, Terminal units, Weight restrictions

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Last updated on 2022-18-01 at 00:01