Efficiency Measurement: Construction of Geographic Data Envelopment Analysis Model

This chapter focuses on the measurement of TSUE and puts forward the GeoDEA model. First, it reviews the fundamentals of the traditional DEA model and highlights its flaw of ignoring geospatial effects. The discussion then elaborates on why spatial heterogeneity and spatial dependence should be incorporated into efficiency measurement. Integrating spatially constrained multivariate clustering with the generalized DEA model, the GeoDEA model reconstructs measurement sets and local efficiency frontiers. Using data from 340 Chinese cities for comparative analysis with the traditional DEA model, this study confirms that the GeoDEA model achieves higher accuracy, more appropriate reference frontiers, and outcomes in line with real urban development. The model serves as a dependable tool for TSUE evaluation.