Data Envelopment Analysis and Commercial Bank Performance: A Primer with Applications to Missouri Banks
Piyu Yue discusses a relatively new methodology for evaluating the technical or productive efficiency of business enterprises. The methodology is called Data Envelopment Analysis (DEA). After discussing the distinction between technical and economic efficiency, the author explains what DEA is and how it can be used to partition a group of firms into those that are DEA-efficient and those that are not. She illustrates the usefulness of the technique with data for 60 Missouri commercial banks for the period 1984-90.