International Journal of Business and Economics Volume 1, No. 1 April​, 2002

Categorical Variables in DEA

Finn R. Frsund

Department of Economics, University of Oslo, Norway

Abstract

The standard DEA model can be applied to a mix of categorical and continuous variables by entering all combinations of them as different types of inputs and/or outputs. Theoretical implications for the nature of feasible peers are investigated.

Keywords：categorical variable, DEA, efficiency, linear programming, peer.

JEL Classifications：C61, D24.

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