Evaluating Efficiency-Effectiveness-Equality Trade-Offs: A Data Envelopment Analysis Approach

Boaz Golany

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Efficiency Analysis Using DEA Multi-Criteria Decision Making Optimization and Mathematical Programming

Abstract

This paper presents a resource allocation model based on Data Envelopment Analysis (DEA). The model extends the original objective of the DEA methodology from measuring efficiency to include the evaluation of various aspects of effectiveness and equality considerations. The model is formulated as a linear program that can be solved by means of a Dantzig-Wolfe decomposition algorithm. Theoretical properties of the model are compared with those corresponding to the model developed by Mandell (Mandell, M. B. 1991. Modelling effectiveness-equity trade-offs in public service delivery systems. Management Sci. 37(4) 467–482.) to evaluate the trade-off between equity and effectiveness. A numerical example is used to illustrate the comparison between the models.

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1978Measuring the efficiency of decision making units 1984Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis 1970On the measurement of inequality 1985Foundations of data envelopment analysis for Pareto-Koopmans efficient empirical production functions 1991Applied data envelopment analysis 1977Equality and Efficiency: The Big Tradeoff. By Arthur M. Okun. (Washington, D.C.: The Brookings Institution, 1975. Pp. 124. $6.95.)1986The Use of Categorical Variables in Data Envelopment Analysis 1984Preface to topics in data envelopment analysis

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