Using a modified DEA model to estimate the importance of objectives. An application to agricultural economics

Francisco André, Inés Herrero () and Laura Riesgo
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Inés Herrero: Department of Business Administration, Universidad Pablo de Olavide

No 07.09, Working Papers from Universidad Pablo de Olavide, Department of Economics

Abstract: This paper shows a connection between Data Envelopment Analysis (DEA) and the methodology proposed by Sumpsi et al. (1997) to estimate the weights of objectives for decision makers in a multiple attribute approach. This connection gives rise to a modified DEA model that allows to estimate not only efficiency measures but also preference weights by radially projecting each unit onto a linear combination of the elements of the payoff matrix (which is obtained by standard multicriteria methods). For users of Multiple Attribute Decision Analysis the basic contribution of this paper is a new interpretation of the methodology by Sumpsi et al. (1997) in terms of efficiency. We also propose a modified procedure to calculate an efficient payoff matrix and a procedure to estimate weights through a radial projection rather than a distance minimization. For DEA users, we provide a modified DEA procedure to calculate preference weights and efficiency measures which does not depend on any observations in the dataset. This methodology has been applied to an agricultural case study in Spain.

Keywords: Multicriteria Decision Making; Goal Programming; Weights; Preferences; Data Envelopment Analysis. (search for similar items in EconPapers)
JEL-codes: C61 Q12 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2007-05
New Economics Papers: this item is included in nep-agr and nep-eff
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Persistent link: https://EconPapers.repec.org/RePEc:pab:wpaper:07.09

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