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DEA Based Yardstick Competition in Natural Resource Management

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Author Info
Peter Bogetoft (Royal Veterinary and Agricultural University, Denmark)
Kurt Nielsen (Royal Veterinary and Agricultural University, Denmark)

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Abstract

In this paper, we discuss the pros and cons of using Data Envelopment Analysis (DEA) to evaluate and enhance the efficiency of natural resource management. The need for a multi-dimensional production frontier approach is sketched, along with examples from other regulated multi-output industries. Also, reviews of the basic properties of DEA and DEA based yardstick competition are provided. Finally, we discuss the use of DEA based yardstick to evaluate bids in multi-dimensional procurement auctions.

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Publisher Info
Paper provided by University of Copenhagen. Department of Economics. Centre for Industrial Economics in its series CIE Discussion Papers with number 2002-04.

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Length: 24 pages
Date of creation: Nov 2002
Date of revision:
Handle: RePEc:kud:kuieci:2002-04

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Related research
Keywords: Regulation; Incentives; Performance Evaluation; Auctions; Yardstick Competition; Data Envelopment Analysis (DEA);

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Find related papers by JEL classification:
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  2. Banker, Rajiv D., 1984. "Estimating most productive scale size using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 17(1), pages 35-44, July. [Downloadable!] (restricted)
  3. Simar, L. & Wilson, P.W., 1999. "Statistical Inference in Nonparametric Frontier Models: the State of the Art," Papers 9904, Catholique de Louvain - Institut de statistique.
  4. Andrei Shleifer, 1985. "A Theory of Yardstick Competition," RAND Journal of Economics, The RAND Corporation, vol. 16(3), pages 319-327, Autumn. [Downloadable!] (restricted)
  5. Roger B. Myerson, 1978. "Optimal Auction Design," Discussion Papers 362, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
  6. Klemperer, P., 1999. "Auction Theory: a Guide to the Literature," Economics Papers 1999-w12, Economics Group, Nuffield College, University of Oxford.
    Other versions:
  7. Laffont, Jean-Jacques & Tirole, Jean, 1986. "Using Cost Observation to Regulate Firms," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 614-41, June. [Downloadable!] (restricted)
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  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. [Downloadable!] (restricted)
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  13. Bowlin, William F., 1997. "A Proposal for Designing Employment Contracts for Government Managers," Socio-Economic Planning Sciences, Elsevier, vol. 31(3), pages 205-216, September. [Downloadable!] (restricted)
  14. Førsund, Finn R. & Kittelsen, Sverre A. C., 1998. "Productivity development of Norwegian electricity distribution utilities," Resource and Energy Economics, Elsevier, vol. 20(3), pages 207-224, September. [Downloadable!] (restricted)
  15. Maskin, Eric & Riley, John, 2000. "Asymmetric Auctions," Review of Economic Studies, Blackwell Publishing, vol. 67(3), pages 413-38, July.
  16. Thanassoulis, Emmanuel, 2000. "DEA and its use in the regulation of water companies," European Journal of Operational Research, Elsevier, vol. 127(1), pages 1-13, November. [Downloadable!] (restricted)
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  18. P. Korhonen, 1998. "Multiple Objective Programming Support," Working Papers ir98010, International Institute for Applied Systems Analysis. [Downloadable!]
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    Other versions:
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  1. Juan Aparicio & Mercedes Landete & Juan Monge & Inmaculada Sirvent, 2008. "A new pricing scheme based on DEA for iterative multi-unit combinatorial auctions," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer, vol. 16(2), pages 319-344, December. [Downloadable!] (restricted)
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