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Cost-efficiency under inter-temporal dependence

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Abstract

One method for evaluating cost-efficiency of commercial firms is data envelopment analysis. In the real world, data have a time dependency that also affects the cost-efficiency calculation. This article introduces a new model for measuring cost-efficiency under inter-temporal dependency in an assessment window. In the proposed approach, there is a reserve capital for the assessment window that is considered as the input of this period, and at any time of the window, a certain amount of capital is used. For practical application, the proposed model is applied to a real dataset of branches of an Iranian commercial bank to evaluate cost-efficiency under inter-temporal dependency.

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Authors and Affiliations

  1. Department of Mathematics, Najafabad Branch, Islamic Azad university, Najafabad, Iran

    Khosro Soleimani-Chamkhorami

  2. Department of Mathematics, Khomeinishar Branch, Islamic Azad University, Khomeinishahr, Iran

    Saeid Ghobadi

Authors
  1. Khosro Soleimani-Chamkhorami
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  2. Saeid Ghobadi
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Correspondence to Khosro Soleimani-Chamkhorami.

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Soleimani-Chamkhorami, K., Ghobadi, S. Cost-efficiency under inter-temporal dependence. Ann Oper Res 302, 289–312 (2021). https://doi.org/10.1007/s10479-021-03989-2

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