H E L S I N G I N K A U P P A K O R K E A K O U L U H E L S I N K I S C H O O L O F E C O N O M I C S Mikko Syrjänen - Systeemianalyysin, päätöksenteon ja riskienhallinnan tutkijakoulu1 Efficient resource allocation - planning and modelling Mikko Syrjänen Helsinki School of Economics P.O.Box 1210, Helsinki, FINLAND

H E L S I N G I N K A U P P A K O R K E A K O U L U H E L S I N K I S C H O O L O F E C O N O M I C S Mikko Syrjänen - Systeemianalyysin, päätöksenteon ja riskienhallinnan tutkijakoulu Introduction Dissertation: Efficient resource allocation - planning and modelling Article: Non-discretionary and discretionary factors and scale in DEA Different types of indicators in DEA Operational environment in DEA Article targeted at DEA researchers and practitioners

H E L S I N G I N K A U P P A K O R K E A K O U L U H E L S I N K I S C H O O L O F E C O N O M I C S Mikko Syrjänen - Systeemianalyysin, päätöksenteon ja riskienhallinnan tutkijakoulu Research problem DEA uses numerical indicators to describe inputs, outputs and operational environment Some indicators are dependent on the scale of operation (volume measures) and some are not (index measures) These are not systematically separated in DEA literature The goal of the article is to analyse the assumptions behind the existing DEA models and the requirements set for data.

H E L S I N G I N K A U P P A K O R K E A K O U L U H E L S I N K I S C H O O L O F E C O N O M I C S Mikko Syrjänen - Systeemianalyysin, päätöksenteon ja riskienhallinnan tutkijakoulu Idea Formulate axioms in the case of CRS for the models with non-discretionary factors Interpret the N-D factors - index vs. volume measures Combine all the approaches in one model Emphasis on the formulation of the assumptions and their implications Explain differences in results Guide model selection

H E L S I N G I N K A U P P A K O R K E A K O U L U H E L S I N K I S C H O O L O F E C O N O M I C S Mikko Syrjänen - Systeemianalyysin, päätöksenteon ja riskienhallinnan tutkijakoulu Results Banker and Morey (1986) - Non-discterionary inputs or outputs in DEA model VRS allow both volume and index CRS model requires volume measures Minor reformulation allows N-D index measures Lovell (1994) and Ruggiero (1996) - Restrict the reference set based on environmental indicators Only index type indicators

H E L S I N G I N K A U P P A K O R K E A K O U L U H E L S I N K I S C H O O L O F E C O N O M I C S Mikko Syrjänen - Systeemianalyysin, päätöksenteon ja riskienhallinnan tutkijakoulu Publishing Working paper submitted to EJOR Referees' comments Clear contribution Shorten examples Give more exact definitions Small modifications needed in the way of presenting the results