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Efficiency and Productivity in the Operational Units of the Armed Forces

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  • Torbjørn, Hanson

    (Dept. of Economics, University of Oslo)

Abstract

Most nations spend a considerable part of their gross domestic product (GDP) on defense. However, no previous study has addressed the productivity and efficiency of the core area of the armed forces, operational units, using Data Envelopment Analysis (DEA). Introducing a model for the production process of an operational unit, productivity and efficiency are estimated by DEA for units of one branch of the Norwegian armed forces. Small samples are a characteristic of DEA studies in the military, and the public sector in general, resulting in a lion’s share of the units being estimated as fully efficient. We find that, by using the bootstrap technique to estimate confidence intervals, we can point at the uncertainty of the estimates and reduce the number of candidates for best practice.

Suggested Citation

  • Torbjørn, Hanson, 2012. "Efficiency and Productivity in the Operational Units of the Armed Forces," Memorandum 07/2012, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2012_007
    as

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    File URL: https://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2012/Memo-07-2012.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Military; Productivity; Efficiency; DEA; Bootstrap;
    All these keywords.

    JEL classification:

    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • H40 - Public Economics - - Publicly Provided Goods - - - General

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