Ranking production units by their impact on structural efficiency

TY - JOUR

T1 - Ranking production units by their impact on structural efficiency

AU - Zhu, Ning

AU - Hougaard, Jens Leth

AU - Ghiyasi, Mojtaba

PY - 2019/5/4

Y1 - 2019/5/4

N2 - League tables associated with various forms of service activities from schools to hospitals illustrate a public need for ranking institutions by their productive performance. We present a new approach for ranking production units which is based on each unit’s marginal contribution in terms of structural efficiency. The approach is radically different from conventional methods based on super-efficiency indexes in Data Envelopment Analysis. We illustrate the mechanics of our method by numerical examples as well as an empirical illustration. We further demonstrate that our new indexes inherit all relevant and desirable properties of the Farrell efficiency index upon which they are constructed.

AB - League tables associated with various forms of service activities from schools to hospitals illustrate a public need for ranking institutions by their productive performance. We present a new approach for ranking production units which is based on each unit’s marginal contribution in terms of structural efficiency. The approach is radically different from conventional methods based on super-efficiency indexes in Data Envelopment Analysis. We illustrate the mechanics of our method by numerical examples as well as an empirical illustration. We further demonstrate that our new indexes inherit all relevant and desirable properties of the Farrell efficiency index upon which they are constructed.

U2 - 10.1080/01605682.2018.1457486

DO - 10.1080/01605682.2018.1457486

M3 - Journal article

SN - 0160-5682

VL - 70

SP - 783

EP - 792

JO - Journal of the Operational Research Society

JF - Journal of the Operational Research Society

IS - 5

ER -