Introduction to the Theory and Application of Data Envelopment Analysis

1 DATA ENVELOPMENT ANALYSIS Data Envelopment Analysis (DEA) was initially developed as a method for assessing the comparative efficiencies of organisational units such as the branches of a bank, schools, hospital departments or restaurants. This text aims to introduce the reader to DEA (Data Envelopment Analysis) in the most accessible manner possible. It is specifically aimed at those who have had no prior exposure to DEA and wish to learn its essentials, how it works, its key uses, and the mechanics of using it. The latter will include using DEA software. Students on degree or training courses should find the book especially helpful. The same is true of practitioners engaging in comparative efficiency assessments and performance management within their organisation. Examples are used throughout the book to help the reader consolidate the concepts covered.