A Slacks-Based DEA-R Approach with an Application to Japanese Banks

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Authors: Xu Wang, Hiroki Iwamoto, Takashi Hasuike
Cited by: 1
References: 24

Abstract

Data envelopment analysis (DEA) is a powerful approach for evaluating the relative efficiency of decision-making units with multiple inputs and outputs. Integrating DEA with ratio analysis has become essential because of the increasing prevalence of ratio data (e.g., return on assets) in practical applications. This study develops a novel DEA-R model and the RAM-R model, which combines the well-established range-adjusted measure (RAM) with ratio analysis. The model effectively handles ratio data, accommodates negative values, and accounts large variations across indicators, thereby enhancing flexibility and robustness in efficiency evaluation. A case study of 93 Japanese banks compares the RAM-R model with the RAM and another slacks-based DEA-R (the slacks-based measure-R and SBM-R) models using ratio data to demonstrate its effectiveness in evaluating efficiency.

Fields of Study & Subjects

Efficiency Analysis Using DEA Accounting and Organizational Management Innovations and Analysis in Business and Education

Publication details

Journal / source
Journal of Advanced Computational Intelligence and Intelligent Informatics
Publisher
Fuji Technology Press Ltd.
Volume
30
Issue
1
Pages
67–77
Publication date
19 January 2026
Language
EN