Volume 1, No. 1, April 2002 

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Categorical Variables in DEA
Finn R. Førsund
Department of Economics, University of Oslo, Norway
Abstract
The standard DEA model can be applied to a mix of categorical and continuous variables by entering all combinations of them as different types of inputs and/or outputs. Theoretical implications for the nature of feasible peers are investigated.

Key words: categorical variable; DEA; efficiency; linear programming; peer

JEL classification: C61; D24

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