Random effects logistic regression model for data envelopment analysis with correlated decision making units

S. Y. Sohn, H. Choi

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

This study attempts to exploit information from environmental variables together with data envelopment analysis (DEA) efficiency scores for efficiency predictions of groups with more limited information. Based on DEA efficiency scores, decision-making units (DMUs) are sorted into two sets containing efficient and inefficient units, respectively. Then they are reshuffled into homogeneous groups with respect to environmental factors. We assume that the efficiency of DMUs in such a homogeneous group would be correlated. However, efficiency of different groups would vary. A beta binomial logistic model is proposed to fit such phenomena and is applied to predict the performance of a new group of commercialization projects for given environmental characteristics.

Original languageEnglish
Pages (from-to)552-560
Number of pages9
JournalJournal of the Operational Research Society
Volume57
Issue number5
DOIs
Publication statusPublished - 2006 May

All Science Journal Classification (ASJC) codes

  • Management Information Systems
  • Strategy and Management
  • Management Science and Operations Research
  • Marketing

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