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The Estimation And Application Of Multi‐Regional Economic Planning Models Using Data Envelopment Analysis

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  • W. D. Macmillan

Abstract

ABSTRACT This paper is concerned primarily with the problems of estimating the production possibility parameters of multiregional economic planning models of a mathematical programming form. It reviews and illustrates a technique known as Data Envelopment Analysis (DEA) and examines the application of this technique to the problem of production function estimation. The standard use of DEA for measuring relative efficiencies of production units is noted. A method for generating input demand and output supply functions using data envelope parameters is presented. Some comments are made about the ‘missing facet problem’, which effects this method's reliability, and a procedure for avoiding the problem is outlined. An alternative approach to supply and demand function estimation based on activity coefficient data is described. Two methods for measuring the relative effectiveness of production units are also presented. Finally, a strategy for using DEA to provide a streamlined activity analysis coefficient matrix for multiregional economic planning models is suggested, and some questions on the practical application and theoretical applicability of DEA‐estimated models are considered.

Suggested Citation

  • W. D. Macmillan, 1986. "The Estimation And Application Of Multi‐Regional Economic Planning Models Using Data Envelopment Analysis," Papers in Regional Science, Wiley Blackwell, vol. 60(1), pages 41-57, January.
    • Handle: RePEc:bla:presci:v:60:y:1986:i:1:p:41-57
    DOI: 10.1111/j.1435-5597.1986.tb01015.x
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    Cited by:

    1. Karima Kourtit & Peter Nijkamp, 2013. "In Search of Creative Champions in High-Tech Spaces," Tinbergen Institute Discussion Papers 13-193/VIII, Tinbergen Institute.
    2. Byrnes, Patricia E. & Storbeck, James E., 2000. "Efficiency gains from regionalization: economic development in China revisited," Socio-Economic Planning Sciences, Elsevier, vol. 34(2), pages 141-154, June.
    3. Manevska-Tasevska, Gordana & Hansson, Helena & Asmild, Mette & Surry, Yves, 2021. "Exploring the regional efficiency of the Swedish agricultural sector during the CAP reforms ‒ multi-directional efficiency analysis approach," Land Use Policy, Elsevier, vol. 100(C).
    4. Schaffer, Axel, 2011. "Appropriate policy measures to attract private capital in consideration of regional efficiency in using infrastructure and human capital," Working Paper Series in Economics 31, Karlsruhe Institute of Technology (KIT), Department of Economics and Management.
    5. Ze Xu & Jianjun Zhang & Chu Li & Zhenyu Li & Yongheng Rao & Tianyu Lu, 2017. "A Road to Sustainable Development of Chinese Cities: A Perception of Improving Urban Management Efficiency Based on Two-Level Production Factors," Sustainability, MDPI, vol. 9(12), pages 1-16, November.
    6. Axel Schaffer & Jan Rauland, 2011. "Regional efficiency in generating technological knowledge," ERSA conference papers ersa10p1108, European Regional Science Association.
    7. Yang, Guo-liang & Fukuyama, Hirofumi, 2018. "Measuring the Chinese regional production potential using a generalized capacity utilization indicator," Omega, Elsevier, vol. 76(C), pages 112-127.
    8. Halkos, George & Tzeremes, Nickolaos, 2008. "Measuring regional public health provision," MPRA Paper 23762, University Library of Munich, Germany.
    9. Athanassopoulos, Antreas D., 1996. "Assessing the comparative spatial disadvantage (CSD) of regions in the European Union using non-radial data envelopment analysis methods," European Journal of Operational Research, Elsevier, vol. 94(3), pages 439-452, November.
    10. Halkos, George & Tzeremes, Nickolaos, 2005. "A DEA approach to regional development," MPRA Paper 3992, University Library of Munich, Germany.
    11. Bannister, Geoffrey J. & Stolp, Chandler, 1995. "Regional concentration and efficiency in Mexican manufacturing," European Journal of Operational Research, Elsevier, vol. 80(3), pages 672-690, February.
    12. Karima Kourtit & Peter Nijkamp, 2013. "In Search Of Creative Champions In High-Tech Spaces: A Spatial Application Of Strategic Performance Management," Journal of Regional Science, Wiley Blackwell, vol. 53(5), pages 749-777, December.
    13. Kourtit Karima & Nijkamp Peter & Suzuki Soushi, 2016. "New Urban Economic Agents: A Comparative Analysis of High-Performance New Entrepreneurs," Quaestiones Geographicae, Sciendo, vol. 35(4), pages 5-22, December.

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