DEA Model with SEM Constraint Cone and Its Application in Construction Efficiency

In order to improve the objectivity of selecting input, output indicators and determining their weights, based on systematic review of the development of DEA model, SEM constraint cone and a DEA model bound with SEM restraint cone were introduced in this paper, which also contributed to solve problems such as existence of hidden variables in the input and output indicators and measures of correlation or causal relation among indicators. The DEA model first used SEM to analyze independent and dependent variables, determining weights of each indicator. Then the selecting of weights in DEA model was restricted by means of SEM. In the end, an empirical research on the validity of construction industry competitiveness of Chinese provinces was done by using this model, and the results show that the model reduces the deviation between the analytical results and the actual situation, while improving the accuracy of the analysis.