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A PCA–DEA approach to measure the quality of life in Estonian counties

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  • Põldaru, Reet
  • Roots, Jüri

Abstract

This paper investigates the application of a PCA–DEA model to assess the quality of life (QOL) scores in Estonian counties and analyses the model's results. The dataset is a balanced panel of 15 Estonian counties covering the period from 2000 to 2011. We consider a PCA–DEA model as an alternative method to estimate and predict QOL scores and rankings of Estonian counties. The method consists of a two-stage analysis that begins with a principal component analysis. In the second stage, the standard DEA is used. The results from the conventional DEA model and the PCA–DEA model are compared and discussed. A comparison of the methodologies demonstrates that a PCA–DEA model provides a powerful tool for performance ranking. The rankings of Estonian counties using QOL scores for different model specifications are presented. Finally, the QOL ranking of Estonian counties is revised using PCA–DEA.

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  • Põldaru, Reet & Roots, Jüri, 2014. "A PCA–DEA approach to measure the quality of life in Estonian counties," Socio-Economic Planning Sciences, Elsevier, vol. 48(1), pages 65-73.
    • Handle: RePEc:eee:soceps:v:48:y:2014:i:1:p:65-73
    DOI: 10.1016/j.seps.2013.10.001
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    3. Chong Ye & Nuo Chen & Shuangyu Weng & Zeyu Xu, 2022. "Regional Sustainability of Logistics Efficiency in China along the Belt and Road Initiative Considering Carbon Emissions," Sustainability, MDPI, vol. 14(15), pages 1-31, August.
    4. Eduardo González & Ana Cárcaba & Juan Ventura, 2018. "Weight Constrained DEA Measurement of the Quality of Life in Spanish Municipalities in 2011," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 136(3), pages 1157-1182, April.
    5. Aydın, Umut & Karadayi, Melis Almula & Ülengin, Füsun, 2020. "How efficient airways act as role models and in what dimensions? A superefficiency DEA model enhanced by social network analysis," Journal of Air Transport Management, Elsevier, vol. 82(C).
    6. Ana Cárcaba & Eduardo González & Juan Ventura & Rubén Arrondo, 2017. "How Does Good Governance Relate to Quality of Life?," Sustainability, MDPI, vol. 9(4), pages 1-16, April.
    7. Giacalone, Massimiliano & Mattera, Raffaele & Nissi, Eugenia, 2022. "Well-being analysis of Italian provinces with spatial principal components," Socio-Economic Planning Sciences, Elsevier, vol. 84(C).
    8. Kozlova, O. A. & Gladkova, T. V. & Makarova, M. N. & Tukhtarova, E. Kh., 2015. "Methodological Approach to Measure the Quality of Life of the Region’s Population," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 1(2), pages 280-290.
    9. Olga Kozlova & Tatyana Gladkova & Mariya Makarova & Yevgeniya Tukhtarova, 2015. "Methodical Approach to Measuring The Life Quality in Region," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(2), pages 182-193.
    10. Mariano, Enzo Barberio & Sobreiro, Vinicius Amorim & Rebelatto, Daisy Aparecida do Nascimento, 2015. "Human development and data envelopment analysis: A structured literature review," Omega, Elsevier, vol. 54(C), pages 33-49.
    11. Ana Cárcaba & Eduardo González & Juan Ventura, 2017. "Social Progress in Spanish Municipalities (2001–2011)," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 12(4), pages 997-1019, December.
    12. Anna Łozowicka & Bartłomiej Lach, 2022. "CI-DEA: A Way to Improve the Discriminatory Power of DEA—Using the Example of the Efficiency Assessment of the Digitalization in the Life of the Generation 50+," Sustainability, MDPI, vol. 14(6), pages 1-22, March.
    13. Veronika Fenyves & Zoltán Bács & Laura Karnai & Adrián Nagy & Tibor Tarnóczi, 2018. "Financial Performance Measurement of Hungarian Retail Food Companies," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 12(4), December.

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    Keywords

    DEA; PCA; Estonia; Quality of life;
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