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Evaluating Efficiency-Effectiveness-Equality Trade-Offs: A Data Envelopment Analysis Approach

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  • Boaz Golany

    (Faculty of Industrial Engineering and Management, Technion--Israel Institute of Technology, Haifa 32000, Israel)

  • Eran Tamir

    (IC 2 Institute, The University of Texas at Austin, 2815 San Gabriel, Austin, Texas 78705)

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    Abstract

    This paper presents a resource allocation model based on Data Envelopment Analysis (DEA). The model extends the original objective of the DEA methodology from measuring efficiency to include the evaluation of various aspects of effectiveness and equality considerations. The model is formulated as a linear program that can be solved by means of a Dantzig-Wolfe decomposition algorithm. Theoretical properties of the model are compared with those corresponding to the model developed by Mandell (Mandell, M. B. 1991. Modelling effectiveness-equity trade-offs in public service delivery systems. Management Sci. 37(4) 467--482.) to evaluate the trade-off between equity and effectiveness. A numerical example is used to illustrate the comparison between the models.

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    File URL: http://dx.doi.org/10.1287/mnsc.41.7.1172
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    Bibliographic Info

    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 41 (1995)
    Issue (Month): 7 (July)
    Pages: 1172-1184

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    Handle: RePEc:inm:ormnsc:v:41:y:1995:i:7:p:1172-1184

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    Related research

    Keywords: DEA; efficiency; effectiveness; equality;

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    Cited by:
    1. White, Sheneeta W. & Badinelli, Ralph D., 2012. "A model for efficiency-based resource integration in services," European Journal of Operational Research, Elsevier, vol. 217(2), pages 439-447.
    2. E. Anthon Eff, 2004. "A Flexible-Weights School Effectiveness Index," Working Papers 200403, Middle Tennessee State University, Department of Economics and Finance.
    3. Barnum, Darold T. & Karlaftis, Matthew G. & Tandon, Sonali, 2011. "Improving the efficiency of metropolitan area transit by joint analysis of its multiple providers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 1160-1176.
    4. Lucia Buzzigoli & Antonio Giusti & Alessandro Viviani, 2010. "The Evaluation of University Departments. A Case Study for Firenze," International Advances in Economic Research, Springer, vol. 16(1), pages 24-38, February.
    5. Singer, Marcos & Donoso, Patricio & Poblete, Francisco, 2002. "Semi-autonomous planning using linear programming in the Chilean General Treasury," European Journal of Operational Research, Elsevier, vol. 140(2), pages 517-529, July.
    6. HOSSEINZADEH LOTFI, Farhad & HATAMI-MARBINI, Adel & AGRELL, Per & GHOLAMI, Kobra, 2013. "Centralized resource reduction and target setting under DEA control," CORE Discussion Papers 2013005, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Reuben Elan & Verma Bharat Bhushan & Bhat Ramesh, . "Hospital Efficiency: An Empirical Analysis of District and Grant-in-Aid Hospitals in Gujarat," IIMA Working Papers WP2001-07-05, Indian Institute of Management Ahmedabad, Research and Publication Department.
    8. Førsund, Finn R., 2013. "Measuring Efficiency and Effectiveness in the Public Sector," Memorandum 16/2013, Oslo University, Department of Economics.
    9. Athanassopoulos, Antreas D., 2004. "Using frontier efficiency models as a tool to re-engineer networks of public sector branches: An application to the Hellenic Tobacco Organization," European Journal of Operational Research, Elsevier, vol. 154(2), pages 533-547, April.
    10. Du, Juan & Cook, Wade D. & Liang, Liang & Zhu, Joe, 2014. "Fixed cost and resource allocation based on DEA cross-efficiency," European Journal of Operational Research, Elsevier, vol. 235(1), pages 206-214.
    11. Beasley, J. E., 2003. "Allocating fixed costs and resources via data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 147(1), pages 198-216, May.
    12. Kerstens, Kristiaan & Bouye, Ahmed Moulaye Hachem & Van de Woestyne, Ignace & Vestergaard, Niels, 2008. "Optimal capacity utilization and reallocation in a German bank branch network: Exploring some strategic scenarios," Working Papers 2008/59, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
    13. Kjærsgaard, Jens, 2010. "Quest for appropriate overcapacity in the fisheries industry," Socio-Economic Planning Sciences, Elsevier, vol. 44(3), pages 141-150, September.
    14. Gabriel Villa & Sebastián Lozano & Berlarmino Adenso-Díaz, 2005. "Reasignación de contenedores de vidrio en los municipios asturianos," Revista de Estudios Regionales, Universidades Públicas de Andalucía, vol. 1, pages 191-211.

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