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Coordination efficiency in multi-output settings: a DEA approach

Author

Listed:
  • Laurens Cherchye

    (University of Leuven)

  • Bram De Rock

    (Université Libre de Bruxelles)

  • Veerle Hennebel

    (University of Leuven)

Abstract

We extend a recently developed methodology for measuring the efficiency of Decision Making Units in the case of multiple inputs and outputs. The methodology accounts for economies of scope through the use of joint inputs, and explicitly includes information about the allocation of inputs to particular outputs. We focus on possible efficiency gains by reallocating inputs across outputs. We introduce a measure of coordination efficiency, which captures these efficiency gains. We demonstrate the practical usefulness of our methodology through an efficiency analysis of education and research conducted at US universities.

Suggested Citation

  • Laurens Cherchye & Bram De Rock & Veerle Hennebel, 2017. "Coordination efficiency in multi-output settings: a DEA approach," Annals of Operations Research, Springer, vol. 250(1), pages 205-233, March.
    • Handle: RePEc:spr:annopr:v:250:y:2017:i:1:d:10.1007_s10479-015-1892-7
    DOI: 10.1007/s10479-015-1892-7
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    Cited by:

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    3. Camanho, Ana Santos & Silva, Maria Conceicao & Piran, Fabio Sartori & Lacerda, Daniel Pacheco, 2024. "A literature review of economic efficiency assessments using Data Envelopment Analysis," European Journal of Operational Research, Elsevier, vol. 315(1), pages 1-18.
    4. Majid Azadi & Balal Karimi & William Ho & Reza Farzipoor Saen, 2022. "Assessing green performance of power plants by multiple hybrid returns to scale technologies," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(4), pages 1177-1211, December.
    5. Ang, Frederic & Mortimer, Simon & Areal, Francisco & Tiffin, Richard, 2015. "The Impact of Dynamic Profit Maximization on Biodiversity: A Network DEA Application to UK Cereal Farms," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205857, Agricultural and Applied Economics Association.
    6. Kao, Chiang & Pang, Rui-Zhi & Liu, Shiang-Tai & Bai, Xue-Jie, 2021. "Optimal expansion paths for hospitals of different types: Viewpoint of scope economies and evidence from Chinese hospitals," European Journal of Operational Research, Elsevier, vol. 289(2), pages 628-638.
    7. Antonio Peyrache & Maria C. A. Silva, 2019. "The Inefficiency of Production Systems and its decomposition," CEPA Working Papers Series WP052019, School of Economics, University of Queensland, Australia.
    8. Antonio Peyrache & Maria C. A. Silva, 2023. "Efficiency decomposition for multi-level multi-components production technologies," Journal of Productivity Analysis, Springer, vol. 60(3), pages 273-294, December.
    9. Walheer, Barnabe & Hudik, Marek, 2019. "Reallocation of resources in multidivisional firms: A nonparametric approach," International Journal of Production Economics, Elsevier, vol. 214(C), pages 196-205.
    10. Frederic Ang & Simon M. Mortimer & Francisco J. Areal & Richard Tiffin, 2018. "On the Opportunity Cost of Crop Diversification," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(3), pages 794-814, September.

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