Abstract

This chapter introduces the main concepts and models underlying the evaluation of efficiency using the Data Envelopment Analysis (DEA) technique. It starts with a historical overview of the origin of DEA models, including a brief description of the theory underlying the representation of the technology of production and the efficient frontier in DEA. The main models for evaluating efficiency are reviewed before discussing recent developments in the DEA literature. The chapter also includes a discussion of well-established and emerging areas of analysis. Successful applications of DEA, both for the support of organisations’ management and the design of public policies, are examined. In the end, some considerations regarding the role of efficiency assessment techniques in modern societies and opportunities for future developments are presented.

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