Polyhedral Cone-Ratio DEA (Data Envelopment Analysis) Models with an Illustrative Application to Large Commercial Banks

摘要

This study is concerned with developing tools which can be applied to managerial performance evaluation and/or for directing audit activities for profit-making as well as not-for-profit entities using multiple inputs to produce multiple outputs. This is accomplished by building on basic concepts of Data Envelopment Analysis (DEA), in particular, the customary CCR ratio forms, as described in Charnes' cone-ratio form of Chames, Cooper, Wei and Huang (1986). Numerical examples are supplied along with mathematical developments and geometric portrayals of what is involved. Followed by an example application to the evaluation of large commercial U.S. banks as drawn from Sun (1987). Keywords: Efficiency Multi attribute optimization; Polyhedral cones; Polar cones; Data envelopment analysis. (jhd)