A quasi-concave DEA model with an application for bank branch performance evaluation

David Dekker, Thierry Post

Research output: Contribution to journalArticle

45 Citations (Scopus)

Abstract

In this paper, we present a data envelopment analysis (DEA) model that replaces the standard DEA assumption of concavity for the production frontier with the less restrictive microeconomic assumption of quasi-concavity. The resulting quasi-concave model circumvents the potential specification error that comes with CCR and BCC models, if the production technology is non-concave, e.g. because of increasing marginal productivity. In addition, the model reduces the potential finite sample error associated with FDH models in small and medium-sized samples. A real-life application for the branch network of a large Dutch bank illustrates the operation of the quasi-concave model and its potential for improving performance evaluation.

Original languageEnglish
Pages (from-to)296-311
Number of pages16
JournalEuropean Journal of Operational Research
Volume132
Issue number2
DOIs
Publication statusPublished - Jul 16 2001

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Keywords

  • Bank branch evaluation
  • Data envelopment analysis
  • Quasi-concavity

ASJC Scopus subject areas

  • Computer Science(all)
  • Modelling and Simulation
  • Management Science and Operations Research
  • Information Systems and Management

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