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A PCA–DEA approach to measure the quality of life in Estonian counties

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  • Põldaru, Reet
  • Roots, Jüri

Abstract

This paper investigates the application of a PCA–DEA model to assess the quality of life (QOL) scores in Estonian counties and analyses the model's results. The dataset is a balanced panel of 15 Estonian counties covering the period from 2000 to 2011. We consider a PCA–DEA model as an alternative method to estimate and predict QOL scores and rankings of Estonian counties. The method consists of a two-stage analysis that begins with a principal component analysis. In the second stage, the standard DEA is used. The results from the conventional DEA model and the PCA–DEA model are compared and discussed. A comparison of the methodologies demonstrates that a PCA–DEA model provides a powerful tool for performance ranking. The rankings of Estonian counties using QOL scores for different model specifications are presented. Finally, the QOL ranking of Estonian counties is revised using PCA–DEA.

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  • Põldaru, Reet & Roots, Jüri, 2014. "A PCA–DEA approach to measure the quality of life in Estonian counties," Socio-Economic Planning Sciences, Elsevier, vol. 48(1), pages 65-73.
    • Handle: RePEc:eee:soceps:v:48:y:2014:i:1:p:65-73
    DOI: 10.1016/j.seps.2013.10.001
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    3. Dariush Khezrimotlagh & Wade D. Cook & Joe Zhu, 2021. "Number of performance measures versus number of decision making units in DEA," Annals of Operations Research, Springer, vol. 303(1), pages 529-562, August.
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    5. Kozlova, O. A. & Gladkova, T. V. & Makarova, M. N. & Tukhtarova, E. Kh., 2015. "Methodological Approach to Measure the Quality of Life of the Region’s Population," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 1(2), pages 280-290.
    6. Olga Kozlova & Tatyana Gladkova & Mariya Makarova & Yevgeniya Tukhtarova, 2015. "Methodical Approach to Measuring The Life Quality in Region," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(2), pages 182-193.
    7. Eduardo González & Ana Cárcaba & Juan Ventura, 2018. "Weight Constrained DEA Measurement of the Quality of Life in Spanish Municipalities in 2011," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 136(3), pages 1157-1182, April.
    8. Mariano, Enzo Barberio & Sobreiro, Vinicius Amorim & Rebelatto, Daisy Aparecida do Nascimento, 2015. "Human development and data envelopment analysis: A structured literature review," Omega, Elsevier, vol. 54(C), pages 33-49.
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    10. Ana Cárcaba & Eduardo González & Juan Ventura, 2017. "Social Progress in Spanish Municipalities (2001–2011)," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 12(4), pages 997-1019, December.
    11. Anna Łozowicka & Bartłomiej Lach, 2022. "CI-DEA: A Way to Improve the Discriminatory Power of DEA—Using the Example of the Efficiency Assessment of the Digitalization in the Life of the Generation 50+," Sustainability, MDPI, vol. 14(6), pages 1-22, March.
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    Keywords

    DEA; PCA; Estonia; Quality of life;
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