Accounting for site characteristics in DEA: Leveling the playing field

Ronald N. Norton; Thomas R. Sexton; Richard H. Silkman

doi:10.1111/j.1475-3995.2007.00583.x

Accounting for site characteristics in DEA: Leveling the playing field

Ronald N. Norton
, Thomas R. Sexton
, Richard H. Silkman

Dean's Office, College of Business

Maine Office of The Public Advocate
University of Maine
Competitive Energy Services LLC

Research output: Contribution to journal › Article › peer-review

6 Scopus citations

Abstract

Many decision-making units (DMUs) operate under site characteristics that differ significantly from those experienced by other DMUs and these differences may affect their efficiency rating. Often, these characteristics are beyond the control of a DMU and may involve environmental and demographic factors, such as topography, population density, and economic welfare. Comparing efficiency ratings absent appropriate attention to variations in these factors across DMUs is unfair. This paper presents a new procedure for removing the influence of site characteristics, which is a vital step in performing efficiency analysis when DMUs operate under significantly different conditions.

Original language	English
Pages (from-to)	231-244
Number of pages	14
Journal	International Transactions in Operational Research
Volume	14
Issue number	3
DOIs	https://doi.org/10.1111/j.1475-3995.2007.00583.x
State	Published - May 2007

Keywords

Data envelopment analysis
Electric utilities
Site characteristics

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10.1111/j.1475-3995.2007.00583.x

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abstract = "Many decision-making units (DMUs) operate under site characteristics that differ significantly from those experienced by other DMUs and these differences may affect their efficiency rating. Often, these characteristics are beyond the control of a DMU and may involve environmental and demographic factors, such as topography, population density, and economic welfare. Comparing efficiency ratings absent appropriate attention to variations in these factors across DMUs is unfair. This paper presents a new procedure for removing the influence of site characteristics, which is a vital step in performing efficiency analysis when DMUs operate under significantly different conditions.",

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AB - Many decision-making units (DMUs) operate under site characteristics that differ significantly from those experienced by other DMUs and these differences may affect their efficiency rating. Often, these characteristics are beyond the control of a DMU and may involve environmental and demographic factors, such as topography, population density, and economic welfare. Comparing efficiency ratings absent appropriate attention to variations in these factors across DMUs is unfair. This paper presents a new procedure for removing the influence of site characteristics, which is a vital step in performing efficiency analysis when DMUs operate under significantly different conditions.

KW - Data envelopment analysis

KW - Electric utilities

KW - Site characteristics

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JF - International Transactions in Operational Research

IS - 3

ER -

Accounting for site characteristics in DEA: Leveling the playing field

Abstract

Keywords

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