Far out or alone in the crowd: A taxonomy of peers in DEA

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Edvardsen, D. F., F.R. Førsund and S.A.C. Kittelsen




Journal of Productivity Analysis

Vol 29: 201-210

Sammendrag (engelsk)

A method is presented for classifying strongly efficient units in DEA as interior or exterior, and as self-evaluators or active peers. The exterior strongly efficient units are found by running the enveloping procedure “from below”. There is no firm production-function evidence of the efficiency of exterior self-evaluators. Interior self-evaluators are more likely to have active peers as neighbours in more directions and may therefore represent technology. When performing a second stage regression analysis of efficiency scores, exterior selfevaluators should be removed. The proportion of exterior active peers also provides information on whether the variable specification is supported by the data.


Interior and exterior peer, active peer and self-evaluator, DEA, referencing zone, nursing homes


C44, C61, D24, I19, L32

Prosjekt info:

Oppdragsgiver: Norges forskningsråd
Oppdragsgivers prosjektnr.:
Frisch prosjekt: 4101 - Økonomi og helse


Research Council of Norway through HERO