IDEAS home Printed from https://ideas.repec.org/a/pal/jorsoc/v67y2016i12d10.1057_jors.2016.36.html
   My bibliography  Save this article

DEA with non-monotonic variables. Application to EU governments’ macroeconomic efficiency

Author

Listed:
  • Gabriel Villa

    (University of Seville)

  • Sebastián Lozano

    (University of Seville)

Abstract

Conventional Data Envelopment Analysis (DEA) considers monotonic variables, ie the lower the inputs and the larger the outputs, the better. There are, however, occasions when the monotonicity of a variable with respect to efficiency depends on the value of the variable, that is in a certain range of values an increase in the variable is desirable, while in another range it is a decrease of the variable that is desirable. In this paper, a DEA model that solves problems considering non-monotonic variables is proposed. An application to assess the macroeconomic efficiency of European Union Member States, as regards taxation, gross debt, GDP growth and employment is presented.

Suggested Citation

  • Gabriel Villa & Sebastián Lozano, 2016. "DEA with non-monotonic variables. Application to EU governments’ macroeconomic efficiency," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 67(12), pages 1510-1523, December.
  • Handle: RePEc:pal:jorsoc:v:67:y:2016:i:12:d:10.1057_jors.2016.36
    DOI: 10.1057/jors.2016.36
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/jors.2016.36
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Toloo, Mehdi, 2009. "On classifying inputs and outputs in DEA: A revised model," European Journal of Operational Research, Elsevier, vol. 198(1), pages 358-360, October.
    2. Kelbesa Megersa & Danny Cassimon, 2015. "Public Debt, Economic Growth, and Public Sector Management in Developing Countries: Is There a Link?," Public Administration & Development, Blackwell Publishing, vol. 35(5), pages 329-346, December.
    3. Facchini, François & Melki, Mickaël, 2013. "Efficient government size: France in the 20th century," European Journal of Political Economy, Elsevier, vol. 31(C), pages 1-14.
    4. François Facchini & Mickaël Melki, 2011. "Optimal Government Size and Economic Growth in France (1871-2008): An explanation by the State and Market Failures," Documents de travail du Centre d'Economie de la Sorbonne 11077, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    5. Toloo, Mehdi, 2014. "Notes on classifying inputs and outputs in data envelopment analysis: A comment," European Journal of Operational Research, Elsevier, vol. 235(3), pages 810-812.
    6. Mehdi Toloo & Mona Barat, 2015. "On considering dual-role factor in supplier selection problem," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 82(1), pages 107-122, August.
    7. Biresh K. Sahoo & Debashis Acharya, 2012. "Constructing macroeconomic performance index of Indian states using DEA," Journal of Economic Studies, Emerald Group Publishing, vol. 39(1), pages 63-83, January.
    8. Eric Wang & Eskander Alvi, 2011. "Relative Efficiency of Government Spending and Its Determinants: Evidence from East Asian Countries," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 1(1), pages 3-28, June.
    9. Kristof Witte & Wim Moesen, 2010. "Sizing the government," Public Choice, Springer, vol. 145(1), pages 39-55, October.
    10. António Afonso & Ludger Schuknecht & Vito Tanzi, 2005. "Public sector efficiency: An international comparison," Public Choice, Springer, vol. 123(3), pages 321-347, June.
    11. Facchini, François & Melki, Mickaël, 2013. "Efficient government size: France in the 20th century," European Journal of Political Economy, Elsevier, vol. 31(C), pages 1-14.
    12. Marijana Bađun & Vedrana Pribičević & Milan Deskar-Škrbić, 2014. "Government size and efficiency as constraints to economic growth: comparing Croatia with other European countries," Post-Communist Economies, Taylor & Francis Journals, vol. 26(3), pages 297-323, September.
    13. Claessens, Stijn, 1990. "The debt laffer curve: Some estimates," World Development, Elsevier, vol. 18(12), pages 1671-1677, December.
    14. Beasley, J. E., 1990. "Comparing university departments," Omega, Elsevier, vol. 18(2), pages 171-183.
    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. António Afonso & Ludger Schuknecht & Vito Tanzi, 2020. "The Size of Government," EconPol Working Paper 46, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    2. Wanjuu Zungwe Lazarus & Hlalefang Khobai & Pierre Le Roux, 2017. "Government Size and Economic Growth in Africa and the Organization for Economic Cooperation and Development Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 628-637.
    3. Sepideh Abolghasem & Mehdi Toloo & Santiago Amézquita, 2019. "Cross-efficiency evaluation in the presence of flexible measures with an application to healthcare systems," Health Care Management Science, Springer, vol. 22(3), pages 512-533, September.
    4. Livio Di Matteo & Fraser Summerfield, 2018. "The Shifting Scully Curve: International Evidence from 1870 to 2013," Working Paper series 18-01, Rimini Centre for Economic Analysis.
    5. Kimaro, Edmund Lawrence & Keong, Choong Chee & Sea, Lau Lin, 2017. "Government Expenditure, Efficiency and Economic Growth: A Panel Analysis of Sub Saharan African Low Income Countries," African Journal of Economic Review, African Journal of Economic Review, vol. 5(2), July.
    6. Wadho, Waqar & Ayaz, Umair, 2017. "Government Size and Economic Growth in an Endogenous Growth Model with Rent-seeking," GLO Discussion Paper Series 131, Global Labor Organization (GLO).
    7. François Facchini & Mickael Melki, 2014. "Political Ideology And Economic Growth: Evidence From The French Democracy," Economic Inquiry, Western Economic Association International, vol. 52(4), pages 1408-1426, October.
    8. Facchini, Francois, 2014. "The determinants of public spending: a survey in a methodological perspective," MPRA Paper 53006, University Library of Munich, Germany.
    9. Kahana, Nava & Klunover, Doron, 2014. "Rent Seeking and the Excess Burden of Taxation," IZA Discussion Papers 8160, Institute of Labor Economics (IZA).
    10. Niclas Berggren & Christian Bjørnskov & David Lipka, 2015. "Legitimacy and the cost of government," Public Choice, Springer, vol. 162(3), pages 307-328, March.
    11. Facchini, François & Seghezza, Elena, 2018. "Public spending structure, minimal state and economic growth in France (1870–2010)," Economic Modelling, Elsevier, vol. 72(C), pages 151-164.
    12. Francois Facchini, 2018. "What Are the Determinants of Public Spending? An Overview of the Literature," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 46(4), pages 419-439, December.
    13. Mehdi Toloo & Mona Barat, 2015. "On considering dual-role factor in supplier selection problem," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 82(1), pages 107-122, August.
    14. Alina Cristina Nuta & Florian Marcel Nuta & Viorica Chirila & Angela Roman & Andy Corneliu Pusca, 2015. "Testing the Relationship between Public Expenditure and Economic Growth in Romania," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 11(4), pages 86-102, August.
    15. Emilian Dobrescu, 2018. "Functional trinity of public finance in an emerging economy," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-27, December.
    16. Petar Stankov, 2017. "Economic Freedom and Welfare Before and After the Crisis," Springer Books, Springer, number 978-3-319-62497-6, January.
    17. Marco Gallegati & Massimo Tamberi, 2020. "Long Swings In The Growth Of Government Expenditure: An International Historical Perspective," Working Papers 447, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    18. Facchini François, 2016. "The Hayek-Keynes Macro Debate Continues," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 22(1), pages 1-13, July.
    19. Alimi, R. Santos, 2014. "Does Optimal Government Size Exist for Developing Economies? The Case of Nigeria," MPRA Paper 56073, University Library of Munich, Germany.
    20. Facchini, François, 2014. "Retour sur la crise et les politiques mises en œuvre : une perspective autrichienne [Past and Future of the crisis]," MPRA Paper 52984, University Library of Munich, Germany.

    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:pal:jorsoc:v:67:y:2016:i:12:d:10.1057_jors.2016.36. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Springer Nature Abstracting and Indexing). General contact details of provider: http://www.palgrave-journals.com/ .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.