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

David Dekker, Thierry Post

Research output: Contribution to journalArticle

  • 42 Citations

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.

LanguageEnglish
Pages296-311
Number of pages16
JournalEuropean Journal of Operational Research
Volume132
Issue number2
DOIs
Publication statusPublished - Jul 16 2001
Externally publishedYes

Fingerprint

Data envelopment analysis
Data Envelopment Analysis
Performance Evaluation
bank
data analysis
Branch
evaluation
performance
Concavity
marginal productivity
Model
microeconomics
Productivity
Banks
Performance evaluation
Bank branches
Specification
Specifications

Keywords

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

ASJC Scopus subject areas

  • Information Systems and Management
  • Management Science and Operations Research
  • Statistics, Probability and Uncertainty
  • Applied Mathematics
  • Modelling and Simulation
  • Transportation

Cite this

A quasi-concave DEA model with an application for bank branch performance evaluation. / Dekker, David; Post, Thierry.

In: European Journal of Operational Research, Vol. 132, No. 2, 16.07.2001, p. 296-311.

Research output: Contribution to journalArticle

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