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Spatial Solution to Measure Regional Efficiency - Introducing Spatial Data Analysis (SDEA)

Author

Listed:
  • Alicja Olejnik

    (University of Lodz)

  • Agata Zoltaszek

    (University of Lodz)

  • Jakub Olejnik

    (University of Lodz)

Abstract

The main objective of this paper is to introduce a new approach to measuring efficiency in regional studies through SDEA (Spatial Data Envelopment Analysis). The paper offers a proper mathematical elaboration and a highlight of the differences between classic DEA and newly developed method. Presented literature review and the discussion on theoretical examples, proves the need for new solution to measure regional efficiency, which takes into consideration region-specific spatial context. The introduced method, SDEA, incorporates explicitly spatial interactions (via the W matrix) into the model through spatially weighted inputs and outputs. An example study concerning healthcare efficiency of European regions will be presented to illustrate SDEA. We confront the efficiency results of classic DEA with results of SDEA, which is expanded by the spatial equivalents of inputs and outputs. The results suggest that classic DEA undervalues the regional healthcare efficiency, underestimating the region-specific spatial context.

Suggested Citation

  • Alicja Olejnik & Agata Zoltaszek & Jakub Olejnik, 2019. "Spatial Solution to Measure Regional Efficiency - Introducing Spatial Data Analysis (SDEA)," Lodz Economics Working Papers 4/2019, University of Lodz, Faculty of Economics and Sociology.
    • Handle: RePEc:ann:wpaper:4/2019
    as

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    File URL: http://hdl.handle.net/11089/30660
    File Function: First version, 2019
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    References listed on IDEAS

    as
    1. Axel Schaffer & Léopold Simar & Jan Rauland, 2011. "Decomposing Regional Efficiency," Journal of Regional Science, Wiley Blackwell, vol. 51(5), pages 931-947, December.
    2. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    spatial data envelopment analysis (SDEA); regional efficiency; spatial interaction; healthcare; diseases of affluence;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development

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