DEA
DEA-BCC: Data Envelopment Analysis (BCC / VRS model)
Banker, R. D., Charnes, A., Cooper, W. W. · 1984
Method assistant
Grounded explanations: it explains the method, it does not compute.
Assumptions to verify
- •All inputs and outputs strictly positive
- •DMUs are homogeneous (same industry/activity type)
- •VRS assumption justified (DMUs operate at different scales)
- •Sufficient DMUs relative to dimensions: m ≥ 3·(p+q)
When not to use
- •Constant returns to scale assumption holds: use CCR
- •Zero or negative values in inputs/outputs
- •Very few DMUs (frontier crowding)
Commonly paired with
- •DEA (CCR) + DEA-BCC (standard)
- •DEA-BCC + DEA-CROSSEFF (common)
How to cite
Banker, R. D.; Charnes, A.; Cooper, W. W. (1984). Some models for estimating technical and scale inefficiencies in data envelopment analysis. Management Science. https://doi.org/10.1287/mnsc.30.9.1078