Open AccessThe efficiency of non-homogeneity security firms in Taiwan
Author(s) -
Yu-Chuan Chen,
Ruei Pin Lee,
Yungho Chiu
Publication year - 2017
Publication title -
panoeconomicus
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.289
H-Index - 14
eISSN - 2217-2386
pISSN - 1452-595X
DOI - 10.2298/pan130518032c
Subject(s) - data envelopment analysis , homogeneity (statistics) , ranking (information retrieval) , nonparametric statistics , homogeneous , econometrics , efficiency , rank (graph theory) , computer science , mathematics , statistics , estimator , artificial intelligence , combinatorics
Data envelopment analysis (DEA) is a nonparametric technique for determining the efficiency of a homogeneous set of decision-making units (DMUs). There are two common problems with traditional DEA. First, traditional DEA fails to adequately distinguish the efficiency DMUs. Second, the DMUs within the same industry are non-homogeneous. This study aims to develop a system-ranking-efficiency model to solve the problems of non-homogeneity and efficiency ranking for DMUs in the same group. The proposed system-rankingefficiency model is based on the concept of boundary change and considers the efficiency DMUs with the greatest influence on the boundary as the most important and, thus, as the ones that should have the highest efficiency ranking. The model is applied in the Taiwan securities industry, in which it was found to successfully rank all the DMUs