COMPONENTS OF EFFICIENCY EVALUATION IN DATA ENVELOPMENT ANALYSIS

This paper examines three essential components which comprise efficien cy evaluation in data envelopment analysis. The three components are p resent in each DEA model and determine the implicit evaluation scheme associated with the model. These components provide a framework for cl assifying the various DEA models with respect to (i) the form of envel opment surface, (ii) the orientation, and (iii) the pricing mechanism implicit in the multiplier lower bounds. The discussion focuses on the standard DEA models, includes additional issues relating to efficienc y evaluation, and is illustrated by a computational example.