Real Estate Cross-efficiency Measurement Based on Peer Appraisal DEA Model and Method in Main Cities of China

Real estate industry in main cities of China had obviously increasing tendency in the past few years. Both with disappearance of gap boundary between county and city and with expanding population in cities, the demands for house purchase become an obvious rising orientation in main cities of China. Real estate industry is stimulated and developed with the corresponding increase of demands. So, the running efficiency of real estate industry connects and reflects the living level and quality of citizen. Cross-efficiency is a DEA arithmetic method which used to calculate the relative efficiency of Decision Management Units (DMUs) in the view of peer-appraisal. The application of measuring real estate running efficiency of main cities in China by cross-efficiency was proposed in this paper. Meanwhile, aggressive and benevolent cross-efficiency models are the extension styles of basic cross-efficiency model. By using the aggressive model and benevolent model separately, we obtained the cross-efficiency fluctuating range for controlling the run efficiency of each city from the aspect of real estate.