Evaluating alternative DEA models used to control for non-discretionary inputs

Evaluation of performance using DEA requires models consistent with the underlying technology. There have been a number of models proposed for analyzing performance in the presence of non-discretionary inputs. Banker and Morey (Operations Research 34 (1986) 513–521) provided the first DEA model to measure technical efficiency. Other single- and multiple-stage models that incorporate DEA have been developed. This paper discusses the various approaches and provides a simulation analysis to compare the relative performance of each.