DEA
DEA-DYNAMIC-NETWORK: Dynamic-Network DEA with Carryovers and Bad Outputs
Fukuyama, H., Weber, W. L. · 2013
Method assistant
Grounded explanations: it explains the method, it does not compute.
Assumptions to verify
- •Two-stage network structure appropriate for the application
- •Carryover assets measurable and clearly defined
- •Bad inputs (lagged bad outputs) enter stage 1 under JWID
- •Stage 2 bad outputs satisfy JWOD (jointly weak disposable with linked desirables)
- •CRS frontier assumption (Σλ free); add Σλ=1 for VRS
- •Initial conditions b^0 and c^0 exogenously available
When not to use
- •Only single period available: use static DEA-NETWORK
- •No carryover mechanism in production: use static network DEA
- •No undesirable outputs: use standard dynamic DEA (Tone & Tsutsui 2010)
- •Small sample J < 3*(N+Q+M+L+C)*T
How to cite
Fukuyama, H.; Weber, W. L. (2013). A dynamic network DEA model with an application to Japanese Shinkin banks. Efficiency and Productivity Growth: Modelling in the Financial Services Industry. https://doi.org/10.1002/9781118523049.ch9