DEA does not necessarily identify the operating units that are relatively efficient.

Question

Quizplus · Accepted Answer

DEA does not necessarily identify the operating units that are relatively efficient because it does not take into account all of the factors that may affect efficiency. For example, DEA does not consider the quality of the inputs or outputs, or the level of technology used. As a result, DEA may identify operating units that are relatively efficient in terms of their use of resources, but that are not necessarily the most efficient overall.

DEA Does Not Necessarily Identify the Operating Units That Are