Search method using concomitant variables for DEA-improvement direction

Abstract

DEA is well known as the method to measure efficiency of DMU (Decision Making Unit) with multiple inputs and multiple outputs. Using concomitant variables, this paper shows that the basic DEA model (CCR) can be spread out into two DEA models: IRS model which suggests the input-based improvement proposal, and DRS model which suggests the output-based improvement proposal. And this paper proposes the framework which selects improvement direction mathematically form the relationship diagram between two DEA models.