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Using Data Envelopment Analysis to Assess Macroeconomic Policy Performance

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Cherchye, Laurens

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Abstract

It is common practice to summarize the macroeconomic performance of countries in terms of the four well-known dimensions captured by the magic diamond of the OECD. This study provides a comparison of several synthetic indicators that merge the four separate indicators into one single statistic. These indicators are inspired by Data Envelopment Analysis (DEA)-based models, which allow for unequal weighting of the different economic objectives. The calculated weights then act as proxies for the true policy priorities. Comparison of the models focuses on the underlying assumptions as well as on the empirical results they generate. Copyright 2001 by Taylor and Francis Group

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Article provided by Taylor and Francis Journals in its journal Applied Economics.

Volume (Year): 33 (2001)
Issue (Month): 3 (February)
Pages: 407-16
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Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:407-16

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  1. Serrao, Amilcar, 2008. "Measuring Eco-efficiency of Agricultural Activity in European Countries: A Malmquist Index Analysis," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6152, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  2. Darold T. Barnum & John M. Gleason, 2006. "Biases in technical efficiency scores caused by intra-input aggregation: mathematical analysis and a DEA application using simulated data," Applied Economics, Taylor and Francis Journals, vol. 38(14), pages 1593-1603, August. [Downloadable!] (restricted)
  3. Laurens Cherchye & Wim Moesen & Tom Van Puyenbroeck, 2003. "Legitimately Diverse, yet Comparable: On Synthesising Social Inclusion Performance in the EU," Public Economics Working Paper Series ces0301, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics. [Downloadable!]
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  4. Chun-Chu Liu, 2006. "Simulating weight restrictions in data envelopment analysis using the subjective and objective integrated approach," Applied Economics, Taylor and Francis Journals, vol. 38(21), pages 2545-2552, December. [Downloadable!] (restricted)
  5. Laurens Cherchye & & Timo Kuosmanen, 2002. "Benchmarking Sustainable Development: A Synthetic Meta-index Approach," Others 0210001, EconWPA, revised 08 Oct 2002. [Downloadable!]
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  6. Mika Kortelainen & Timo Kuosmanen, 2004. "Measuring Eco-efficiency of Production: A Frontier Approach," Econometrics 0411006, EconWPA. [Downloadable!]
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