A Comparison of Ensemble and Dimensionality Reduction DEA Models Based on Entropy Criterion

Dimensionality reduction research in data envelopment analysis (DEA) has focused on subjective approaches to reduce dimensionality. Such approaches are less useful or attractive in practice because a subjective selection of variables introduces bias. A competing unbiased approach would be to use ens...

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Bibliographic Details
Main Author: Parag C. Pendharkar
Format: Article
Language:English
Published: MDPI AG 2020-09-01
Series:Algorithms
Subjects:
Online Access:https://www.mdpi.com/1999-4893/13/9/232
Description
Summary:Dimensionality reduction research in data envelopment analysis (DEA) has focused on subjective approaches to reduce dimensionality. Such approaches are less useful or attractive in practice because a subjective selection of variables introduces bias. A competing unbiased approach would be to use ensemble DEA scores. This paper illustrates that in addition to unbiased evaluations, the ensemble DEA scores result in unique rankings that have high entropy. Under restrictive assumptions, it is also shown that the ensemble DEA scores are normally distributed. Ensemble models do not require any new modifications to existing DEA objective functions or constraints, and when ensemble scores are normally distributed, returns-to-scale hypothesis testing can be carried out using traditional parametric statistical techniques.
ISSN:1999-4893