Coordination Efficiency in Multi-Output Settings: A DEA Approach
KU Leuven Discussion Paper Series DPS14.24
34 Pages Posted: 14 Oct 2014
Date Written: August 19, 2014
We extend a recently developed methodology for measuring the efficiency of Decision Making Units (DMUs) 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.
Keywords: DEA, input allocation, decentralized efficiency, centralized efficiency, coordination efficiency, university education and research
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