Author(s)

Mauricio Benegas

School of Business, Accounting and Economics, Federal University of Ceará, Fortaleza, Brazil.

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.

DEA, Yanai’s Generalized Coefficient of Determination, Pseudo-Rank, Dimension Reduction, Improving Discrimination

Benegas, M. (2017) The Use of Yanai’s Generalized Coefficient of Determination to Reduce the Number of Variables in DEA Models. American Journal of Operations Research, 7, 187-200. doi: 10.4236/ajor.2017.73013.