de Mateo, F., Coelli, T., & O'Donnell, C. (2006). Optimal paths and costs of adjustment in dynamic DEA models: with application to chilean department stores. Ann. Oper. Res., 145(1), 211–227.
Abstract: In this paper we propose a range of dynamic data envelopment analysis (DEA) models which allow information on costs of adjustment to be incorporated into the DEA framework. We first specify a basic dynamic DEA model predicated on a number or simplifying assumptions. We then outline a number of extensions to this model to accommodate asymmetric adjustment costs, non-static output quantities, non-static input prices, and non-static costs of adjustment, technological change, quasi-fixed inputs and investment budget constraints. The new dynamic DEA models provide valuable extra information relative to the standard static DEA models-they identify an optimal path of adjustment for the input quantities, and provide a measure of the potential cost savings that result from recognising the costs of adjusting input quantities towards the optimal point. The new models are illustrated using data relating to a chain of 35 retail department stores in Chile. The empirical results illustrate the wealth of information that can be derived from these models, and clearly show that static models overstate potential cost savings when adjustment costs are non-zero.
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Yushimito, W. F., Alves, P. N., Canessa, E., & de Mateo, F. (2018). Relating Efficiency With Service Compliance Indices In Public Transportation Using Slack-Based Measure Data Envelopment Analysis And Shadow Prices. Promet, 30(6), 661–670.
Abstract: In many countries, bus operators are private companies whose service has been leased by government agencies. These agencies develop service compliance indices or measures to keep track of factors such as passenger satisfaction, frequency, and regularity but do not necessarily include the objectives of the operators in the assessment. In this paper, we used slack-based measure data envelopment analysis (SBM) to investigate whether it is possible for a bus operator to be efficient (from a private perspective) and match required standards of frequency and regularity. In doing so, data collected from two major bus operators in Santiago, Chile has been used comprising 99 services. The results show that when private objectives, namely revenues, are included in the analysis, bus operators do not necessarily seek to improve the regularity of their service. Moreover, it was found that some bus services are on the efficient frontier while keeping low performance measure standards. Using the shadow prices of the models, it was also found that improving the performance measures will be hard for many bus services unless there is a significant change in factors that are not under control of the operators (i.e., number of stops, length of the route, etc.). This shows the difficulty of correctly aligning the private objectives of operators with agencies' objectives.
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