7 of 7 people found the following review helpful:
2.0 out of 5 stars
Too many typos, April 30, 2004
In this book, author not only lays the foundation of the technique of DEA effectively, but also dedicates a significant portion of the book to illustrate it through full-fledged applications implemented by the author himself. It covers the latest developments in this field and lists out resources. A "not-too-rigorous" mathematical treatment makes this book an easy rapid reading text. A chapter dedicated to do's and don'ts from the implementation point of view and solutions to the selected problems at the end of the book makes it very useful. The book emphasizes on practice rather than abstract theory.
The book though disappoints readers having a keen eye for details, due to a number of typographical errors, use of variables without defining them and inappropriate sequencing of problems within exercises and across chapters. The inadvertent insertion of technical details unnecessarily at numerous instances might distract or annoy readers. The matrix representation of the formulations need not have been left in the main body of the text. Similarly discussion on the non-Archimedean constant could have been extracted out to an appendix.
The author begins with very lucid and clear exposition of terms, concepts aided with graphical illustrations. He elucidates the applicability of DEA to Not-For-Profit organizations with reasoning and elaborates the underlying philosophy of DEA. The generalized mathematical formulation by first principles leading to formulation of fractional DEA program through a simple example elicits interest among readers. The CCR model laying the first stepping stone in the formal theory of DEA is immediately followed by dual DEA formulation which capitalize the interest aroused till then.
The relationship between output (input) maximizing (minimizing) multiplier DEA and the input (output) oriented envelopment DEA in chapter 2 could have been better illustrated through a solved example. The two-stage optimization procedure is yet another distraction which could have been avoided by taking it appendix as it is not used further in text. In the section on interpretation of dual, the example involving firms PQR & T is inserted unnecessarily which creates discontinuity and concludes in an adhoc fashion.
In line with the chronology of the theory of DEA, the concept of "economies of scale" is introduced subsequently in chapter 3, which includes basic concepts of CRS and VRS, technical and scale efficiencies, estimation of MPSS and their detailed investigation. This helps the reader understand the evolution of DEA to real life adaptation and its increasing acceptance. This chapter ends with ample examples for the reader to have a good grasp of the theory. This chapter introduces the BCC model quite succinctly backed by good references, but is plagued with a number of typographical errors. With this chapter, the basic theory and evolution of DEA during its foundation years is covered exhaustively and the text is fairly easy to understand as the shift to application of theory beyond this chapter. Besides a good understanding of the dual LP theory is a prerequisite to develop a sound foundation.
The variants of basic models and the recent developments have been covered in chapter 4 of the book which covers Multiplicative DEA models, Additive models, Window Analysis and Malmquist Productivity Index Approach. Similarly, variants in these models, such as use of non-discretionary input / output, treatment of categorical variables, incorporation of judgmental and subjective weights, are discussed. These models and variants are briefly introduced but examples for select few are illustrated. Examples for each type of variant could however have made the chapter more effective. The chapter ends with three exercise problems and a note for advanced readers on other DEA models which establishes its linkage with multi criteria decision making models. This evokes appreciation for utility of DEA extensions.
The best of the book lies in the chapter on computer support for DEA, wherein the computational features of DEA are taken into account along with the resources available in print and web media. DEA software is presented in the fifth chapter which is aptly detailed with finer implementation level details like compatibility with the OS, the embedded solver, limits on the size of the problem, interfacing with other common software etc. The format of data input, specification of variables, syntax of command, and snapshots of the various intermediate and final outputs along with their interpretation make very interesting and engaging reading. This is very helpful for readers who want to try out DEA. The software of varying degrees of robustness and complexity are demonstrated namely DEAP, EMS, GAMS formulation and Excel serving the vast range of readers on the spectrum of elementary to advanced level.
The chapter on DEA bibliography and application takes the reader to the world of "DEA in practice" which helps one understand the issues involved in problem formulation, implementation, sensitivity analysis of model, post DEA analysis, validation and reaffirmation of the results through techniques such as regression etc. The problems attempt to demonstrate full-fledged implementation which range from comparative performance of schools to productivity assessment of State transport undertakings in India, from comparative risk assessment of energy systems and energy efficiencies of transport modes in India to Carbon dioxide emissions of countries. This wide range of problems adds to the richness of the text especially when the studies have been carried out by the author himself.
The book concludes with a chapter on do's and don'ts for undertaking DEA studies. Some fundamental considerations enlisted for characterizing DMUs, selection of input/output and DEA model, post DEA procedures, strengths and weaknesses of DEA would enhance confidence of amateurs. The chapter climaxes with a graph clearly illustrating the severe limitation of DEA in case of DMUs having same peer members, leaving the reader wanting for more.
A book covering so much is expected to be shallow, but it makes easy reading and opens the doors to the field of DEA. The most notable feature of the book is its use of many small case studies, comprehensive bibliography and illustration of software usage. "DEA made simple" or "DEA in 24 hours" could have been more appropriate titles.
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