Developing of a Dynamic Network Data Envelopment Analysis Model for Performance Evaluating Banking Sector

Document Type : Original Article


1 Ph.D Student, Tehran University.

2 Professor, Tehran University.

3 Associate Professor, Islamic Azad University, Science and Research Branch Tehran.

4 Associate Professor, Islamic Azad University, North Tehran Branch.


Data envelopment analysis is a mathematical technique to evaluate the performance of DMUs with similar inputs and outputs. The traditional models don’t consider the internal structure of DMUs and have a black box perspective, so in order to assess the structures with more than one stage, Network DEA (NDEA) models were developed, but these models are static and don’t consider time in the evaluation. On the other hand, Dynamic DEA (DDEA) models that were developed to assess DMUs during the time, consider DMUs in every period of time as a black box. Most of the organizations (such as banks) have the multi stage process and their operation is a continuous process during consequent periods, and using the Network DEA and Dynamic DEA alone is not adequate to assess them. In this study a Dynamic Network DEA (DNDEA) model is developed that considers both the structure and time in the evaluation and two methods are introduced for calculating the efficiency. After developing the model, it was used in an applied study to evaluate the performance of fourteen banks, and the stages efficiency, network efficiency and dynamic network efficiency of them were calculated.


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