Publication Date:
2010-01-01
Description:
We empirically demonstrate a practical approach of efficiency evaluation with limited data availability in some regulated industries. We apply PCA-DEA for radial efficiency measurement to U.S. natural gas transmission companies in 2007. PCA-DEA reduces dimensions of the optimization problem while maintaining most of the variation in the original data. Our results suggest that the methodology reduces the probability of over-estimation of individual firm-specific performance.
Print ISSN:
2194-5993
Electronic ISSN:
1446-9022
Topics:
Economics
Permalink