An empirical study on measuring the relative efficiency using DEA method: A case study of bank industry

Abstract

Data Envelopment Analysis (DEA) has been widely used as an effective tool for measuring the relative efficiency of similar units by considering various input/output parameters. This paper examines DEA models for the estimation and improvement of organizational inputs and outputs in order to enhance management and decision making processes. We propose an empirical DEA analysis on banking sector by considering several financial and non-financial inputs and outputs. The relative efficiencies of various branches of banks are analyzed in different scenarios. The preliminary results indicate that there are some non-financial items that could significantly change the overall performance of a unit along with other financial items.

Keywords

• Data envelopment analysis (DEA)
• Efficiency
• Input estimation
• Output estimation
• Bank Industry