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Data Envelopment Analysis for Measuring of Economic Growth in Terms of Welfare Beyond GDP

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  • Martin Lábaj

    ()
    (University of Economics in Bratislava, Faculty of National Economy, Department of Economic Policy)

  • Mikuláš Luptáèik

    ()
    (University of Economics in Bratislava, Faculty of National Economy, Department of Economic Policy)

  • Eduard Nežinský

    ()
    (University of Economics in Bratislava, Faculty of National Economy, Department of Economic Policy)

Abstract

Recent discussions on the definition of growth in terms of welfare beyond GDP suggest that it is of urgent need to develop new approaches for measuring the economic performance of the firms and national economies. The new concepts should take into account simultaneously economic as well as social and environmental goals. We first discuss several approaches to productivity measures. Then we extend the Data Envelopment Analysis models for environment to measure the so called eco-efficiency and for social indicators to take into account the social performance. For an illustration, we perform the analysis of 30 European countries in the year 2010. In the last section we discuss the possibilities of inter-temporal analysis of proposed models and of their use in ex-ante evaluation of different policy scenarios.

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Bibliographic Info

Paper provided by Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava in its series Department of Economic Policy Working Paper Series with number 002.

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Length: 18 pages
Date of creation: 20 Jan 2013
Date of revision:
Handle: RePEc:brt:depwps:002

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Keywords: eco-efficiency; data envelopment analysis; beyond GDP;

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  1. Mahlberg, Bernhard & Luptacik, Mikulas & Sahoo, Biresh K., 2011. "Examining the drivers of total factor productivity change with an illustrative example of 14 EU countries," Ecological Economics, Elsevier, vol. 72(C), pages 60-69.
  2. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
  3. Dyckhoff, H. & Allen, K., 2001. "Measuring ecological efficiency with data envelopment analysis (DEA)," European Journal of Operational Research, Elsevier, vol. 132(2), pages 312-325, July.
  4. Daniel Dujava, 2012. "Causes of Lagging Behind of New Member States of EU: Empirical Analysis by Montgomery Decomposition," Politická ekonomie, University of Economics, Prague, vol. 2012(2), pages 222-244.
  5. Bosetti, Valentina & Buchner, Barbara, 2009. "Data Envelopment Analysis of different climate policy scenarios," Ecological Economics, Elsevier, vol. 68(5), pages 1340-1354, March.
  6. Thijs Raa & Pierre Mohnen, 2002. "Neoclassical Growth Accounting and Frontier Analysis: A Synthesis," Journal of Productivity Analysis, Springer, vol. 18(2), pages 111-128, September.
  7. Korhonen, Pekka J. & Luptacik, Mikulas, 2004. "Eco-efficiency analysis of power plants: An extension of data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 154(2), pages 437-446, April.
  8. 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.
  9. Fare, Rolf & Grosskopf, Shawna & Tyteca, Daniel, 1996. "An activity analysis model of the environmental performance of firms--application to fossil-fuel-fired electric utilities," Ecological Economics, Elsevier, vol. 18(2), pages 161-175, August.
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