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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
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    References listed on IDEAS

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