Meta-frontier analysis using cross-efficiency method for performance evaluation

Efficiency overestimation and technology heterogeneity are important factors that affect the use of data envelopment analysis. This paper introduces a meta-frontier analysis framework into a cross-efficiency method to develop a new efficiency evaluation method. This method can be used to calculate, aggregate, and decompose the cross efficiencies relative to the meta-frontier and group-frontier. Then the technology gap between these frontiers can be measured and more detailed information regarding the inefficiency of decision-making units can be obtained. This enables decision makers to improve efficiency in a targeted manner. Subsequently, the non-uniqueness of the optimal solution is discussed for the new method, and the cross-evaluation strategy is introduced to ensure the stability of the optimal solution. Finally, two examples are presented to illustrate the effectiveness of this method. (C) 2019 Elsevier B.V. All rights reserved.