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Subject:

Problem in running DEA for categorical variables

From:

Rajesh S Upadhyayula <[log in to unmask]>

Reply-To:

Rajesh S Upadhyayula <[log in to unmask]>

Date:

Sat, 9 Jul 2005 12:42:49 +0100

Content-Type:

text/plain

Parts/Attachments:

Parts/Attachments

text/plain (28 lines)

Hi everyone,

I am a Doctoral student at Indian Institute of Management, ahmedabad. My
work involves identifying those processes and practices of firms in
Information Technology sector and Electronics industries for which the
productivity of the firm is higher.

My output variable is employee productivity, whereas my input variables is
adoption of process or practice by each firm (Decision Making Unit). I have
following questions

a. Firstly can i run DEA if my inputs (process and practices) are binary (it
takes a value zero if the process is not adopted and takes a value 1 if the
prcess is adopted)? Am i violating any of the assumptions of DEA?

b. If I can use DEA, what is the technique that I need to use? I have read
some of the material on both Free Disposal Hull and Categorical variables. I
am still not sure if any of these two techniques can help me.

thanking you everybody for any help on the above.

Rajesh S Upadhyayula,
Dorm 5 Room 2,
Indian Institute of Management,
Vastrapur, Ahmedabad
Ph: +91-79-26326502 (H)
Ph: +91-79-26324714 (O)

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