Ranking the airports in Turkey with Data Envelopment Analysis and Principal Component Analysis

摘要

Data envelopment analysis (DEA) is a linear programming (LP) technique for measuring the relative efficiency of peer decision making units(DMUs) when multiple inputs and outputs are present. This objective method was originated by Charnes et al. (1978). DEA can be used, not only for estimating the performance of units, but also for solving other problems of management such as aggregating several preference rankings into single ranking. Data Envelopment Analysis (DEA) model selection is an important step and problematic. Efficiency values for decision making units are connected to input and output data. It also depends on the number of outputs plus inputs. A new method for model selection is proposed in this study. Efficiencies are calculated for all possible DEA model specifications. It is shown that model equivalence or dissimilarity can be easily assessed using this approach. The results are analysed using Principal Component Analysis.