IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v44y1998i2p173-187.html
   My bibliography  Save this article

Decision Support for Target-Based Resource Allocation of Public Services in Multiunit and Multilevel Systems

Author

Listed:
  • Antreas D. Athanassopoulos

    (Benchmarking Unit, Business and Project Management Consulting, L. Ionia S 38, Athens 104 46, Greece)

Abstract

This paper is concerned with the problem of resource allocation and target setting in the provision of public services. The paper develops a network-based representation of multilevel resource management with equity, efficiency, and effectiveness being recognised as the fundamental objectives of the system. On the modelling side, the proposed method combines data envelopment analysis and goal programming formulations integrated within an interactive planning framework. An illustrative application on fire departments is used to show the applicability of the method developed to assist the resource allocation process.

Suggested Citation

  • Antreas D. Athanassopoulos, 1998. "Decision Support for Target-Based Resource Allocation of Public Services in Multiunit and Multilevel Systems," Management Science, INFORMS, vol. 44(2), pages 173-187, February.
    • Handle: RePEc:inm:ormnsc:v:44:y:1998:i:2:p:173-187
    DOI: 10.1287/mnsc.44.2.173
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.44.2.173
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.44.2.173?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ruefli, Timothy W., 1974. "Analytic models of resource allocation in hierarchical multi-level systems," Socio-Economic Planning Sciences, Elsevier, vol. 8(6), pages 353-363, December.
    2. Laffont, Jean-Jacques & Tirole, Jean, 1986. "Using Cost Observation to Regulate Firms," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 614-641, June.
    3. Kate, A, 1972. "Decomposition of Linear Programs by Direct Distribution," Econometrica, Econometric Society, vol. 40(5), pages 883-898, September.
    4. Boaz Golany & Eran Tamir, 1995. "Evaluating Efficiency-Effectiveness-Equality Trade-Offs: A Data Envelopment Analysis Approach," Management Science, INFORMS, vol. 41(7), pages 1172-1184, July.
    5. van Ackere, Ann, 1993. "The principal/agent paradigm: Its relevance to various functional fields," European Journal of Operational Research, Elsevier, vol. 70(1), pages 83-103, October.
    6. 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.
    7. Marsh, Michael T. & Schilling, David A., 1994. "Equity measurement in facility location analysis: A review and framework," European Journal of Operational Research, Elsevier, vol. 74(1), pages 1-17, April.
    8. Peter Bogetoft, 1997. "DEA-based yardstick competition: The optimality of best practice regulation," Annals of Operations Research, Springer, vol. 73(0), pages 277-298, October.
    9. Burton, Richard M. & Obel, Borge, 1988. "Opportunism, incentives, and the m-form hypothesis : A laboratory study," Journal of Economic Behavior & Organization, Elsevier, vol. 10(1), pages 99-119, July.
    10. Peter Bogetoft, 1994. "Incentive Efficient Production Frontiers: An Agency Perspective on DEA," Management Science, INFORMS, vol. 40(8), pages 959-968, August.
    11. Samuel E. Bodily, 1978. "Police Sector Design Incorporating Preferences of Interest Groups for Equality and Efficiency," Management Science, INFORMS, vol. 24(12), pages 1301-1313, August.
    12. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    13. Agha Iqbal Ali & Wade D. Cook & Lawrence M. Seiford, 1991. "Strict vs. Weak Ordinal Relations for Multipliers in Data Envelopment Analysis," Management Science, INFORMS, vol. 37(6), pages 733-738, June.
    14. Laffont, Jean-Jacques, 1994. "The New Economics of Regulation Ten Years After," Econometrica, Econometric Society, vol. 62(3), pages 507-537, May.
    15. Athanassopoulos, Antreas D., 1996. "Assessing the comparative spatial disadvantage (CSD) of regions in the European Union using non-radial data envelopment analysis methods," European Journal of Operational Research, Elsevier, vol. 94(3), pages 439-452, November.
    16. Thanassoulis, E. & Dyson, R. G., 1992. "Estimating preferred target input-output levels using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 56(1), pages 80-97, January.
    17. Nijkamp, Peter & Rietveld, Piet, 1981. "Multi-objective multi-level policy models : An application to regional and environmental planning," European Economic Review, Elsevier, vol. 15(1), pages 63-89.
    18. Burton, Richard M & Obel, Børge, 1977. "The multilevel approach to organizational issues of the firm--A critical review," Omega, Elsevier, vol. 5(4), pages 395-414.
    19. Oral, Muhittin & Kettani, Ossama, 1993. "The facets of the modeling and validation process in operations research," European Journal of Operational Research, Elsevier, vol. 66(2), pages 216-234, April.
    20. Peter Bogetoft, 1993. "Parallelism in Information Production: Moral Hazard and Relative Performance Evaluations," Management Science, INFORMS, vol. 39(4), pages 448-457, April.
    21. E. S. Savas, 1978. "On Equity in Providing Public Services," Management Science, INFORMS, vol. 24(8), pages 800-808, April.
    22. Athanassopoulos, Antreas D., 1995. "Goal programming & data envelopment analysis (GoDEA) for target-based multi-level planning: Allocating central grants to the Greek local authorities," European Journal of Operational Research, Elsevier, vol. 87(3), pages 535-550, December.
    23. Andrei Shleifer, 1985. "A Theory of Yardstick Competition," RAND Journal of Economics, The RAND Corporation, vol. 16(3), pages 319-327, Autumn.
    24. Marvin B. Mandell, 1991. "Modelling Effectiveness-Equity Trade-Offs in Public Service Delivery Systems," Management Science, INFORMS, vol. 37(4), pages 467-482, April.
    25. Karl Heiner & William A. Wallace & Kevin Young, 1981. "A Resource Allocation and Evaluation Model for Providing Services to the Mentally Retarded," Management Science, INFORMS, vol. 27(7), pages 769-784, July.
    26. James R. Freeland & Jeffrey H. Moore, 1977. "Implications of Resource Directive Allocation Models for Organizational Design," Management Science, INFORMS, vol. 23(10), pages 1050-1059, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Athanassopoulos, Antreas D., 1995. "Goal programming & data envelopment analysis (GoDEA) for target-based multi-level planning: Allocating central grants to the Greek local authorities," European Journal of Operational Research, Elsevier, vol. 87(3), pages 535-550, December.
    2. Lorenzo Castelli & Raffaele Pesenti & Walter Ukovich, 2010. "A classification of DEA models when the internal structure of the Decision Making Units is considered," Annals of Operations Research, Springer, vol. 173(1), pages 207-235, January.
    3. Athanassopoulos, Antreas D., 2004. "Using frontier efficiency models as a tool to re-engineer networks of public sector branches: An application to the Hellenic Tobacco Organization," European Journal of Operational Research, Elsevier, vol. 154(2), pages 533-547, April.
    4. HOSSEINZADEH LOTFI, Farhad & HATAMI-MARBINI, Adel & AGRELL, Per & GHOLAMI, Kobra, 2013. "Centralized resource reduction and target setting under DEA control," LIDAM Discussion Papers CORE 2013005, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. Peter Bogetoft & Kurt Nielsen, 2002. "DEA Based Yardstick Competition in Natural Resource Management," CIE Discussion Papers 2002-04, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
    6. Bogetoft, Peter & Eskesen, Anita, 2022. "Balancing information rents and service differentiation in utility regulation," Energy Economics, Elsevier, vol. 106(C).
    7. Nasim Nasrabadi & Akram Dehnokhalaji & Narsis Kiani & Pekka Korhonen & Jyrki Wallenius, 2012. "Resource allocation for performance improvement," Annals of Operations Research, Springer, vol. 196(1), pages 459-468, July.
    8. Adel Hatami-Marbini & Zahra Ghelej Beigi & Hirofumi Fukuyama & Kobra Gholami, 2015. "Modeling Centralized Resources Allocation and Target Setting in Imprecise Data Envelopment Analysis," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 14(06), pages 1189-1213, November.
    9. Peter Bogetoft, 2000. "DEA and Activity Planning under Asymmetric Information," Journal of Productivity Analysis, Springer, vol. 13(1), pages 7-48, January.
    10. Varmaz, Armin & Varwig, Andreas & Poddig, Thorsten, 2013. "Centralized resource planning and Yardstick competition," Omega, Elsevier, vol. 41(1), pages 112-118.
    11. Bogetoft, Peter & Nielsen, Kurt, 2003. "Yardstick Based Procurement Design In Natural Resource Management," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25910, International Association of Agricultural Economists.
    12. Zanakis, Stelios H. & Mandakovic, Tomislav & Gupta, Sushil K. & Sahay, Sundeep & Hong, Sungwan, 1995. "A review of program evaluation and fund allocation methods within the service and government sectors," Socio-Economic Planning Sciences, Elsevier, vol. 29(1), pages 59-79, March.
    13. Yingying Shao & Gongbing Bi & Feng Yang & Qiong Xia, 2018. "Resource allocation for branch network system with considering heterogeneity based on DEA method," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(4), pages 1005-1025, December.
    14. Agrell, Per J. & Brea-Solís, Humberto, 2017. "Capturing heterogeneity in electricity distribution operations: A critical review of latent class modelling," Energy Policy, Elsevier, vol. 104(C), pages 361-372.
    15. Athanassopoulos, Antreas D. & Lambroukos, Nikos & Seiford, Lawrence, 1999. "Data envelopment scenario analysis for setting targets to electricity generating plants," European Journal of Operational Research, Elsevier, vol. 115(3), pages 413-428, June.
    16. Afsharian, Mohsen & Ahn, Heinz & Thanassoulis, Emmanuel, 2017. "A DEA-based incentives system for centrally managed multi-unit organisations," European Journal of Operational Research, Elsevier, vol. 259(2), pages 587-598.
    17. An, Qingxian & Tao, Xiangyang & Chen, Xiaohong, 2023. "Nested frontier-based best practice regulation under asymmetric information in a principal–agent framework," European Journal of Operational Research, Elsevier, vol. 306(1), pages 269-285.
    18. Najmeh Malekmohammadi & Farhad Lotfi & Azmi Jaafar, 2011. "Data envelopment scenario analysis with imprecise data," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 19(1), pages 65-79, March.
    19. An, Qingxian & Tao, Xiangyang & Xiong, Beibei & Chen, Xiaohong, 2022. "Frontier-based incentive mechanisms for allocating common revenues or fixed costs," European Journal of Operational Research, Elsevier, vol. 302(1), pages 294-308.
    20. Afsharian, Mohsen & Ahn, Heinz & Thanassoulis, Emmanuel, 2019. "A frontier-based system of incentives for units in organisations with varying degrees of decentralisation," European Journal of Operational Research, Elsevier, vol. 275(1), pages 224-237.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:44:y:1998:i:2:p:173-187. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.