Super-Efficiency and Sensitivity Analysis in DEA for the Case of Exogenously Fixed Inputs

In some realistic situations there may exist exogenously fixed or non-discretionary factors that are beyond the control of management and need to be considered. When an under-evaluated decision-making unit (DMU) is not included in the reference set of the original data envelopment analysis (DEA) models, the resulting DEA models are called super-efficiency DEA models. In this paper, by means of the modified Banker and Morey’s model, we show that the super-efficiency score can be decomposed into two data perturbation components of a particular test frontier decision-making unit and the remaining DMUs. In this means, we run a sensitivity analysis by specifying what perturbations of discretionary data can be tolerated before frontier DMUs become nonfrontier.

Keywords:

Data envelopment analysis , Efficiency , Exogenously fixed inputs , Sensitivity analysis , Super-efficiency