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The Use of Yanai’s Generalized Coefficient of Determination to Reduce the Number of Variables in DEA Models

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Document pages: 14 pages

Abstract: 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.

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