Overview on Data Envelopment Analysis

The chapter provides a general introductory overview of data envelopment analysis. Its main purpose is to introduce the reader to the major concepts underlying this nonparametric technique. After familiarizing the reader with the general process used in calculating the scores of relative efficiency, the chapter presents an overview of various orientations and types of DEA models. In conclusion, the chapter gives an overview of using DEA for the purposes of constructing Malmquist index, a popular tool for measuring changes in efficiency over time; a brief example is used to illustrate major points.