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Influential DMUs and outlier detection in data envelopment analysis with an application to health care

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Abstract

This paper explains some drawbacks on previous approaches for detecting influential observations in deterministic nonparametric data envelopment analysis models as developed by Yang et al. (Annals of Operations Research 173:89–103, 2010). For example efficiency scores and relative entropies obtained in this model are unimportant to outlier detection and the empirical distribution of all estimated relative entropies is not a Monte-Carlo approximation. In this paper we developed a new method to detect whether a specific DMU is truly influential and a statistical test has been applied to determine the significance level. An application for measuring efficiency of hospitals is used to show the superiority of this method that leads to significant advancements in outlier detection.

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Authors and Affiliations

  1. Iran University of Science & Technology (IUST), Tehran, Iran

    Ali Reza Bahari

  2. Operations and Information Management Group, Aston Business School, Aston University, Birmingham, UK

    Ali Emrouznejad

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  1. Ali Reza Bahari
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  2. Ali Emrouznejad
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Correspondence to Ali Emrouznejad.

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Bahari, A.R., Emrouznejad, A. Influential DMUs and outlier detection in data envelopment analysis with an application to health care. Ann Oper Res 223, 95–108 (2014). https://doi.org/10.1007/s10479-014-1604-8

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  • DOI: https://doi.org/10.1007/s10479-014-1604-8

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