Malmquist Productivity Index with Dynamic Network Structure

Abstract

Data envelopment analysis (DEA) measures the relative efficiency of decision making units (DMUs) with multiple inputs and multiple outputs. DEA-based Malmquist productivity index measures the productivity change over time. We propose a dynamic DEA model involving network structure in each period within the framework a DEA. We have previously published the network DEA (NDEA) and the dynamic DEA (DDEA) models separately. Hence, this article is a composite of these two models. Vertically, we deal with multiple divisions connected by links of network structure within each period and, horizontally, we combine the network structure by means of cary-over activities between succeeding periods. We also introduce dynamic Malmquist index by which we can compare divisional performances over time