Abstract
This chapter describes network DEA models, where a network consists of sub-technologies. A DEA model typically describes a technology to a level of abstraction necessary for the analyst’s purpose, but leaves out a description of the sub-technologies that make up the internal functions of the technology. These sub-technologies are usually treated as a “black box”, i.e., there is no information about what happens inside them. The specification of the sub-technologies enables the explicit examination of input allocation and intermediate products that together form the production process. The combination of sub-technologies into networks provides a method of analyzing problems that the traditional DEA models cannot address. We apply network DEA methods to three examples; a static production technology with intermediate products, a dynamic production technology, and technology adoption (or embodied technological change). The data and GAMS code for two examples of network DEA models are listed in appendices.
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Färe, R., Grosskopf, S., Whittaker, G. (2007). Network DEA. In: Zhu, J., Cook, W.D. (eds) Modeling Data Irregularities and Structural Complexities in Data Envelopment Analysis. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-71607-7_12
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DOI: https://doi.org/10.1007/978-0-387-71607-7_12
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