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Quantitative evaluation of nation stability

Author

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  • Tsuneyoshi, Takao
  • Hashimoto, Akihiro
  • Haneda, Shoko

Abstract

This paper quantitatively evaluates nation stability, defined as the state of a country's social and economic system as measured by multiple evaluation indicators, and observes its transitions. Data Envelopment Analysis/Malmquist Index (DEA/MI) methodology is applied to the panel data for 97 countries for the period 1981–2004, although the DEA application is totally different from the DEA efficiency/productivity analysis. This analysis includes a “unified” country (Germany) and “split” countries (former Soviet Union, Czechoslovakia, and Yugoslavia). Using the novel panel-data handling proposed in this study, we demonstrate shifts in stability before/after the unification or split. The stability of split countries fell by 50% or more, showing that they were extremely unstable before the split. The use of lower-bound DEA together with ordinary DEA enables a country's stability to be evaluated in terms of both negative and positive aspects.

Suggested Citation

  • Tsuneyoshi, Takao & Hashimoto, Akihiro & Haneda, Shoko, 2012. "Quantitative evaluation of nation stability," Journal of Policy Modeling, Elsevier, vol. 34(1), pages 132-154.
  • Handle: RePEc:eee:jpolmo:v:34:y:2012:i:1:p:132-154
    DOI: 10.1016/j.jpolmod.2011.06.003
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    References listed on IDEAS

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    Cited by:

    1. Nayak, Purusottam & Mishra, SK, 2012. "Efficiency of Pena’s P2 Distance in Construction of Human Development Indices," MPRA Paper 39022, University Library of Munich, Germany.
    2. Ehrke, Jürgen, 2012. "How to assist separatists in breaking up a country... or, rather, not: The role of decentralization and development assistance," MPRA Paper 44045, University Library of Munich, Germany.
    3. Hepp, Andreas & Lingenberg, Swantje & Elsler, Monika & Möller, Johanna & Mollen, Anne & Offerhaus, Anke, 2013. ""I just hope the whole thing won't collapse": "understanding" and "overcoming" the EU financial crisis from the citizens' perspective," TranState Working Papers 168, University of Bremen, Collaborative Research Center 597: Transformations of the State.

    More about this item

    Keywords

    Nation stability; Data envelopment analysis; Malmquist index; Merger; Split; Unified country; Split country;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • Z00 - Other Special Topics - - General - - - General

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