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Efficiency and cross-efficiency in DEA: derivations, meanings and uses

By John R. Doyle and R. Green

Abstract

In this paper we examine a neglected aspect of Data Envelopment Analysis: cross-efficiency. We develop the concept of cross-efficiency in a number of new directions. We ground an intuitive understanding of cross-efficiency in the concept of peer-appraisal, as opposed to self-appraisal implied by simple efficiency, and discuss the relative merits of each. We also present mathematical formulations of, and intuitive meanings for three possible implementations of aggressive and benevolent cross-efficiency. We have implemented two of these formulations in computer programs; their performance is compared empirically on a real data set. Finally, we suggest practical uses for cross-efficiency, illustrated with reference to the same data set

Topics: H1, HD, QA75
Publisher: Palgrave Macmillan
Year: 1994
OAI identifier: oai:http://orca.cf.ac.uk:38036
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