Improving the discrimination power through compromise solution approach: Malaysian banks as illustration

Improving the discrimination power through compromise solution approach: Malaysian banks as illustration

The conventional DEA gives each DMU an extreme flexibility in selecting its own weights in order to get its optimal efficiency score, which may result in a relatively high number of efficient DMUs, and prevents DEA from being a robust approach in determining the most efficient unit. Moreover, this f...

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Main Authors: Hanafi, Hocine, Larbani, Moussa
Format: Conference or Workshop Item
Language:English
English
Published: 2014
Subjects:
HB131 Methodology.Mathematical economics. Quantitative methods
Online Access:http://irep.iium.edu.my/42113/
http://irep.iium.edu.my/42113/
http://irep.iium.edu.my/42113/2/improving_discrimination_compiled.pdf
http://irep.iium.edu.my/42113/3/DEA2014-P253.pdf
id iium-42113
recordtype eprints
spelling iium-421132015-02-26T10:12:59Z http://irep.iium.edu.my/42113/ Improving the discrimination power through compromise solution approach: Malaysian banks as illustration Hanafi, Hocine Larbani, Moussa HB131 Methodology.Mathematical economics. Quantitative methods The conventional DEA gives each DMU an extreme flexibility in selecting its own weights in order to get its optimal efficiency score, which may result in a relatively high number of efficient DMUs, and prevents DEA from being a robust approach in determining the most efficient unit. Moreover, this flexibility hampers a common base for comparison and leads to a weak discrimination power among all DMUs as well as unrealistic weights allocation among inputs and outputs for all or part of DMUs. In this paper we show that these drawbacks can be satisfactorily overcome by compromise solution approach (Kao and Hung, 2005). We extend the Kao and Hung’s approach to the BCC model and scale efficiency computation. To compare the proposed models with the conventional DEA models, a sample of 30 Malaysian commercial banks is examined for the period 2006 to 2011, in terms of efficiency scores, ranking and returns to scale. 2014 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/42113/2/improving_discrimination_compiled.pdf application/pdf en http://irep.iium.edu.my/42113/3/DEA2014-P253.pdf Hanafi, Hocine and Larbani, Moussa (2014) Improving the discrimination power through compromise solution approach: Malaysian banks as illustration. In: 12th International Conference on Data Envelopment Analysis, 14th-17th April 2014, Kuala Lumpur. http://www.deaconference.com/dea2014/
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
English
topic HB131 Methodology.Mathematical economics. Quantitative methods
spellingShingle HB131 Methodology.Mathematical economics. Quantitative methods
Hanafi, Hocine
Larbani, Moussa
Improving the discrimination power through compromise solution approach: Malaysian banks as illustration
description The conventional DEA gives each DMU an extreme flexibility in selecting its own weights in order to get its optimal efficiency score, which may result in a relatively high number of efficient DMUs, and prevents DEA from being a robust approach in determining the most efficient unit. Moreover, this flexibility hampers a common base for comparison and leads to a weak discrimination power among all DMUs as well as unrealistic weights allocation among inputs and outputs for all or part of DMUs. In this paper we show that these drawbacks can be satisfactorily overcome by compromise solution approach (Kao and Hung, 2005). We extend the Kao and Hung’s approach to the BCC model and scale efficiency computation. To compare the proposed models with the conventional DEA models, a sample of 30 Malaysian commercial banks is examined for the period 2006 to 2011, in terms of efficiency scores, ranking and returns to scale.
format Conference or Workshop Item
author Hanafi, Hocine
Larbani, Moussa
author_facet Hanafi, Hocine
Larbani, Moussa
author_sort Hanafi, Hocine
title Improving the discrimination power through compromise solution approach: Malaysian banks as illustration
title_short Improving the discrimination power through compromise solution approach: Malaysian banks as illustration
title_full Improving the discrimination power through compromise solution approach: Malaysian banks as illustration
title_fullStr Improving the discrimination power through compromise solution approach: Malaysian banks as illustration
title_full_unstemmed Improving the discrimination power through compromise solution approach: Malaysian banks as illustration
title_sort improving the discrimination power through compromise solution approach: malaysian banks as illustration
publishDate 2014
url http://irep.iium.edu.my/42113/
http://irep.iium.edu.my/42113/
http://irep.iium.edu.my/42113/2/improving_discrimination_compiled.pdf
http://irep.iium.edu.my/42113/3/DEA2014-P253.pdf
first_indexed 2023-09-18T21:00:05Z
last_indexed 2023-09-18T21:00:05Z
_version_ 1777410565479596032

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