TITLE:
The Use of Yanai’s Generalized Coefficient of Determination to Reduce the Number of Variables in DEA Models
AUTHORS:
Mauricio Benegas
KEYWORDS:
DEA, Yanai’s Generalized Coefficient of Determination, Pseudo-Rank, Dimension Reduction, Improving Discrimination
JOURNAL NAME:
American Journal of Operations Research,
Vol.7 No.3,
May
18,
2017
ABSTRACT: This paper proposes a new method to reduce the dimensionality of input and output spaces in DEA models. The method is based on Yanai’s Generalized Coefficient of Determination and on the concept of pseudo-rank of a matrix. In addition, the paper suggests a rule to determine the cardinality of the subset of selected variables in a way to gain the maximal discretionary power and to suffer a minimal informational loss.