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Efficiency and productivity in the operational units of the armed forces: A Norwegian example

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  • Hanson, Torbjørn

Abstract

Most nations spend a considerable part of their gross domestic product (GDP) on defense. However, no previous study has addressed productivity and efficiency in the core area of the armed forces, operational units, using Data Envelopment Analysis (DEA). Introducing a model for the production process of an operational unit, productivity and efficiency are estimated by DEA for units of one branch of the Norwegian armed forces. Small samples are a characteristic of DEA studies in the military, and the public sector in general, resulting in nearly half of the units being estimated as fully efficient. We find that, by using the bootstrap technique to estimate confidence intervals, we can point to uncertainty in the estimates and reduce the number of candidates for best practice.

Suggested Citation

  • Hanson, Torbjørn, 2016. "Efficiency and productivity in the operational units of the armed forces: A Norwegian example," International Journal of Production Economics, Elsevier, vol. 179(C), pages 12-23.
    • Handle: RePEc:eee:proeco:v:179:y:2016:i:c:p:12-23
    DOI: 10.1016/j.ijpe.2016.05.016
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    References listed on IDEAS

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    Cited by:

    1. Hien Thu Pham & Shino Takayama, 2017. "Revisiting the “Missing Middle”: Productivity Analysis," Discussion Papers Series 580, School of Economics, University of Queensland, Australia.
    2. HUSERAȘ Alin Teodor & BALTEȘ Nicolae, 2023. "Evaluation Of National Defense From An Economic Perspective," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 75(2), pages 87-97, June.
    3. Hanson, Torbjørn & Lindgren, Petter Y., 2019. "No country for old men? Increasing the retirement age in the Armed Forces," MPRA Paper 95917, University Library of Munich, Germany.
    4. Lindgren, Petter Y. & Presterud, Ane Ofstad, 2021. "Expanding the Norwegian Armed Forces in the Time of Corona: Benefit-Cost Analysis in the Context of High Unemployment Rate," MPRA Paper 106405, University Library of Munich, Germany.
    5. Førsund, Finn R., 2017. "Measuring effectiveness of production in the public sector," Omega, Elsevier, vol. 73(C), pages 93-103.
    6. Hanson, Torbjørn, 2019. "Estimating output mix effectiveness: An applied scenario approach for the Armed Forces," Omega, Elsevier, vol. 83(C), pages 39-49.
    7. José Solana‐Ibáñez & Manuel Caravaca‐Garratón & Ricardo Teruel‐Sánchez, 2020. "Stakeholder perception on corporate reputation and management efficiency: Evidence from the Spanish Defence sector," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2381-2399, September.
    8. Hanson, Torbjørn, 2016. "Estimating output mix effectiveness: A scenario approach," Memorandum 14/2016, Oslo University, Department of Economics.

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