Importing data and defining the variables in DEAP

In the previous article, “Using Data Envelopment Analysis (DEA) program for measuring efficiency” the process to download Data Envelopment Analysis program (DEAP) was explained and the case problem in hand was defined. The first step is to understand how to import data to DEAP. MS Excel is used to compile the data collected from the various sources and literature followed in selection of input and output variables. The underlying steps will help in understanding importing and importance of each part.

Importing data from MS Excel

First step is to copy the variables from MS Excel to Notepad (banks.txt akin to data.txt). Change the file name accordingly.

Data Sheet in MS Excel
Data Sheet in MS Excel

Quick Note: First add the Output variables (i.e. Total loans and Profits) and then add the Input variables (i.e. Total Capital and Deposits) for the 10 case banks while importing the data to Data Envelopment Analysis (DEA).

Imported Data in data.txt file
Imported data in data.txt file

 

Defining the variables and files names in DEA

The DEA instruction file
The DEA instruction file

Then open the instruction file, data-ins.txt as in the DEA tool package (file name unchangeable as found while practical application). As in the above image banks.txt is file location for data. Give any name to output file. Here,

  1. Decision making units (DMUs’) are defined by no. of firms or no. of rows. 10 in the current case example or 10 DMUs’.
  2. Mention the output file name where the dataset pasted (banks.txt) and also mention the name of the file where the results represented (result.txt).
  3. Number of time period, here is “one” because performance efficiency for only one year is being analyzed (FY2016).
  4. No. of outputs and inputs are 2 as mentioned previously wherein Inputs are Total Capital and Deposits and Outputs are Total Loans and Profits.
  5. This software supports both constant returns to scale (CRS) and variable returns to scale (VRS) scales of analyzing DEA. However, one may select either 0 for CRS and 1 for VRS according to the personal requirement. This instruction file is unchangeable, any unprecedented change may cause wrong results. Here CRS based analysis used and hence “0” is chosen. In the similar way for an input oriented CRS- DEA; where the efficiency testing based on the level of input variables. Choose “0” or if it is output oriented then choose “1”.
  6. Again, there are different methods to perform a data envelopment analysis which has been classified as Multistage, Cost-DEA, MALMQUIST, 1-Stage DEA and 2-Stage DEA. “Multistage” model used in most cases to perform efficiency analysis, due to Radial and Slack movement analytics to provide projected values of efficiency measure and so choose “0” in the instruction file. Hence, multi stage analysis has been adopted in this study.
 

Output Results of different models

Cost DEA Technical efficiency, Allocative efficiency and Cost efficiency, Summary of cost minimizing values (input/output)
MALMQUIST Distance summary, Technical Efficiency, MALMQUIST Index Summary, Index Summary (Annual means and Firm means)
1-Stage DEA Same as multi-stage but Algorithm is different (linear programming with Slacks residuals)
2-Stage DEA Same as multi-stage but Algorithm is different (linear programming)
Multistage Efficiency summary, Slacks, Peers, Target summary, Technical Efficiency and Firm wise results

Different types of models and their outputs

Next step is to open DEAP.EXE and type the instruction file name (e.g. data-ins.txt) and run. This is also the basic interface of the DEA tool which is a DOS command file system. The file name data-ins.txt and press enter. The analysis will hardly take 10 secs.

The DEAP software’s interface (Coelli, 2008)
The DEAP software’s interface (Coelli, 2008)

Running the DEA software

The instruction file has an output file named results.txt. So, in the folder named DEAP, look for the output file that will be in .txt format and open it. The results file or the output file will shows the efficiency and other related results.

Here one should note that these instructions are basically to perform input oriented multistage model based CRS-DEA. The findings and interpretations from the analysis discussed and represented in the next article.

References

Using Data Envelopment Analysis (DEA) program for measuring efficiencyChallenges of using DEA-Solver for data envelopment analysis

Avishek Majumder

Research Analyst at Project Guru
Avishek is a Master in Biotechnology and has previously worked with Lifecell International Private Limited. Apart from data analysis and biological research, he loves photography and reading. He loves to play football and basketball in his spare time with an avid interest in adventure and nature. He was also a member of the Scouts in his school and has attended Military training.
Avishek Majumder
9 thoughts on “Importing data and defining the variables in DEAP”
  1. Avatar Geich 1 year & 10 months ago

    Dear Sir,
    How can I get the DEAP.EXE file?

    • Avatar Avishek Majumder 1 year & 10 months ago

      Dear Geich,

      The DEAP.EXE file is available in the zipped file once you download and extract the DEAP software from http://www.uq.edu.au/economics/cepa/deap.php
      After downloading the zip file you will have to extract it. Once you open the extracted folder, you will see DEAP.exe file.

      For any more information and assistance, you can either go through the modules posted on our webpage or reply back.

      Thank and regards,

      Avishek Majumder

  2. Avatar mahdi 1 year ago

    Dear sir
    Hi
    how I can find your article about analysis out put of DEAP ??

  3. Avatar Girma 1 year & 4 months ago

    Dear,how can i download DEAP?

  4. Avatar Nur 10 months ago

    Dear Sir,
    I’ve tried to run the data, but there is no output file being generated. May I know what could be the reason?

    • Avatar Avishek Majumder 10 months ago

      Dear Nur,
      Thank you for writing. Make sure that the execution file along with instruction files are in the same folder. Refer to this https://www.projectguru.in/publications/data-envelopment-analysis-dea/
      As per your doubt, there may be three possibilities:
      1. Recheck the instruction file and see that the information is put correctly.
      2. Make sure that the output file name doe not match any other file name in the folder.
      3. Make sure you are running the correct file name in the execution file.

  5. Avatar Vishal Vincent Joseph 2 months & 3 weeks ago

    Hi Avishek,

    I’m running a model with the following characteristics:
    – 2 Outputs
    – 9 Inputs
    – 16 DMUS’s

    The dataset is in the form of a panel spanning 12 years and all variables have been mean normalized for that particular year. I’m currently using Malmquist DEA method to get results on yearly frequency with VRS approach and Input Orientation. However, I am not getting any variation in efficiency for 9 DMU’s and all these 9 are coming out as efficient. Is there something I’m not doing right?

  6. Avatar nayla 1 month & 3 weeks ago

    Dear sir,
    what does it means when the out.file come out with Inf written in it.

    i’m doing malmquist. Thank you

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