Efficiency measurement in economics and Management

Abstract

This presentation introduces the basics of Data Envelopment Analysis techniques, with a short historical introduction and examples of the Constant Returns to Scale model, (CRS) and the Variable Returns to Scale (VRS) Model. The ratio models are linearized and for both orientations (input minimization or output maximization) primal and dual models are presented, and its economic meaning discussed on a managerial point of view. Some screenshots of specific freely available software will be explained.