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3735. SOME PROBLEMS WITH BENEFIT OF THE DOUBT MODELS
Invited abstract in session WD-48: DEA methodological developments II, stream Data Envelopment Analysis and its Application.
Wednesday, 14:30-16:00Room: 60 (building: 324)
Authors (first author is the speaker)
| 1. | Paul Rouse
|
| Accounting & Finance, University of Auckland | |
| 2. | Maryam Hasannasab
|
| Accounting and finance, The university of Auckland | |
| 3. | Dimitris Margaritis
|
| Accounting and Finance, University of Auckland |
Abstract
Benefit of the Doubt (BoD) models are increasingly popular in the literature with flexibility around technology assumptions and ease of understanding for managers and practitioners. Most of the focus has been on the efficiency scores with little attention paid to benchmarking in terms of target values and the appropriateness of peers. Specifically, there are problems that arise when weight restrictions are imposed, particularly the effects on efficient frontiers, further compounded when virtual weight restrictions are used. These affect target values and benchmarking peers with nonintuitive effects as the lower bounds on the restrictions are increased.
A further question concerns how size can be incorporated to allow for scale economies. Further issues arise with respect to units-invariance properties for output oriented models.
We illustrate these issues using sustainability data comprising GRI measures and provide some thoughts towards addressing these problems.
Keywords
- Data Envelopment Analysis
Status: accepted
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