Data Envelopment Analysis

Data Envelopment Analysis is a non-parametric efficiency analysis technique used to evaluate the relative efficiency of similar decision-making units among themselves by using the input and output variables in the data set. Since it is a non-parametric analysis technique, there is no distribution requirement. The logic of DEA is expressed as choosing the maximum ratio of weighted outputs to weighted inputs.

As a result of the analysis, effective decision-making units are determined as “1”. It creates a reference set for decision-making units. The active volume is the target value for the others. However they can achieve efficiency by analogy to the input or output of this active unit.

It can be used to compare the performance of decision units in different fields such as health, energy and finance. It compares the performance of units such as hospitals, factories, electricity distribution companies, investment funds within itself.

Applications such as R-Project, PIM-DEA can be used to perform Data Envelopment Analysis.