Russell-graph measure and super efficiency in data envelopment analysis

Abstract

In non-parametric methods, if the number of operational units is relatively small when compared with the sum of number of inputs and outputs, many units are evaluated as efficient. The super-efficiency Data Envelopment Analysis (DEA) model can be used to discriminate between these efficient units. In this paper, an efficiency measure based on the weighted Russell-graph measure is proposed. By using this efficiency measure, a new super-efficiency DEA model is proposed to overcome the infeasibility problem of the existing methods. This approach is applied to 14 commercial bank branches and 15 US cities, respectively.